Low owner involvement increases SaaS valuation multiples, says Smale
Thomas Smale · You Won't Believe How He's Sold 350 Businesses in 6 Years, EP 254: Thomas Smale · Jun 3, 2016 · at 4:43
Thomas Smale, co-founder of M&A brokerage FE International, explains the key operational variables that determine online business valuation multiples.
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“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 team of programmers and developers in place.”
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