Post by account_disabled on Mar 7, 2024 4:05:08 GMT
About billing, ebitda and something else… Due to the experience acquired in the purchase and sale of offices in the last three years in which we have had the opportunity to participate in more than 30 purchase and sale processes and integration of professional firms , we have identified an evolution, we would say, a continuous professionalization in the valuation of consultancies . We could refer to different factors, but, ultimately, the most relevant is economic and financial. For many years we have thought that billing was a reference, simply because said billing carried with it a profitability associated and related to the turnover.
In times of competitive uncertainty, where Asia Mobile Number List the price factor and the digital transformation processes will accelerate, not only from the administration, but also from the offices themselves, the buyer views the operating account from a “risk” perspective and, Therefore, it highlights the return on said investment, as well as the conditions that must be faced in the integration of said portfolio, considering Ebitda as a reference value in the event of a possible purchase of a professional firm.
The personnel cost structures, not very flexible in substance and form, consolidated salaries and little adaptation of professionals to changes, are generating a relevant adjustment in the valuations of professional firms, which in no case have an impact on billing, directly impacting Ebitda as a reference for return on investment. Considering what has been discussed to date, it is important for the firm that, regardless of whether or not to value the sale of its firm, it takes into account the following: If I position myself in a “yes sale” scenario, keep in mind that returns of less than 15% will practically never have associated purchase prices linked to annual billing.
This factor may vary, solely due to a supply and demand effect on portfolios located in the billing ranges of €100-20 thousand, given that these are very attractive for offices with an investment philosophy due to their ease of accessing them, practically with partial financial leverage. In the event of “non-sale”, applicable to most offices, our recommendation is always the same, prepare the office for relevant profitability and competitiveness scenarios. It is important to self-evaluate the firm to see its tangible value at each moment in its history. Sale price of the office or consultancy But we have, something else, the great forgotten.
In times of competitive uncertainty, where Asia Mobile Number List the price factor and the digital transformation processes will accelerate, not only from the administration, but also from the offices themselves, the buyer views the operating account from a “risk” perspective and, Therefore, it highlights the return on said investment, as well as the conditions that must be faced in the integration of said portfolio, considering Ebitda as a reference value in the event of a possible purchase of a professional firm.
The personnel cost structures, not very flexible in substance and form, consolidated salaries and little adaptation of professionals to changes, are generating a relevant adjustment in the valuations of professional firms, which in no case have an impact on billing, directly impacting Ebitda as a reference for return on investment. Considering what has been discussed to date, it is important for the firm that, regardless of whether or not to value the sale of its firm, it takes into account the following: If I position myself in a “yes sale” scenario, keep in mind that returns of less than 15% will practically never have associated purchase prices linked to annual billing.
This factor may vary, solely due to a supply and demand effect on portfolios located in the billing ranges of €100-20 thousand, given that these are very attractive for offices with an investment philosophy due to their ease of accessing them, practically with partial financial leverage. In the event of “non-sale”, applicable to most offices, our recommendation is always the same, prepare the office for relevant profitability and competitiveness scenarios. It is important to self-evaluate the firm to see its tangible value at each moment in its history. Sale price of the office or consultancy But we have, something else, the great forgotten.