Legal Blog

M&A Nugget: Not One Size Fits All

The adage “one size fits all” clearly does not apply to the enterprise value of a target. In today’s hectic M & A environment, valuations vary widely based in large part on the target’s industry and the type of purchaser. No one measure of value applies across the board. Also, within various measures, such as a multiple of EBITDA and a multiple of gross revenues, wide ranges abound. For example, while EBITDA multiples of four to six are the historic norm and still apply to many industries, it is not unusual for multiples of EBITDA above ten and even between fifteen and twenty to be used to determine transaction value. The point is that it is important to know how companies in your industry are valued. The goal of the seller is to not have an overly rosy picture of value, which can lead to a potential transaction going nowhere, or to have too low a perception of value, which can lead to you selling your company short.





If you have any questions about this or any other M&A issue,
please contact Glenn Solomon at or 443-738-1522.


ABOUT GLENN D. SOLOMON | 443-738-1522

Glenn D. Solomon is a principal at Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years. He has extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.


Offit Kurman is one of the fastest-growing full-service law firms in the United States. With over 200 attorneys in 14 offices that stretch from New York to North Carolina, we represent privately-held companies and families of wealth throughout their business life cycles. Our mission is to provide our clients with “The Better Way” to grow their organizations, protect their businesses’ and families’ wealth, and resolve their most challenging legal conflicts. In addition to our quality of attorneys and breadth of legal services, Offit Kurman is distinguished by our unique operational structure, which encourages collaboration rather than internal competition. The same approach that makes our firm attractive to legal practitioners gives clients unlimited access to experienced counsel in every area of the law. Trust, Knowledge, Confidence—in a partner, that’s perfect.

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