Q So what are the, that's what I'm trying to get at Thomas. What if someone's listening right now, they're running a SAS business and they're going, I wonder what Thomas would value me for. What are the, what are the variables you're using and what multiple do you buy?
A Yeah. So some of the most, most important variables are the amount of time the owner spends on the business, the complexity of their input. So a owner working 40 hours a week, who's a very technical owner who does all the programming themselves. That business is going to be worth Less in terms of multiple than a business where the owner works five hours a week and they're not doing anything technical. And there's a, a team of programmers and developers in place. Um, so yeah, the owner's involvement is one of the most important and like how much time they spend on the business, what the, the growth of the business looks like. So a business that's growing say five, 10% month over month is worth more than the business has been on a consistent decline.
AI assessment note: “some of the most, most important variables are the amount of time the owner spends”