Trades businesses valued at 3-7x cash flow depending on size and service mix

The advisor explains that buyers of trades businesses pay a multiple of true cash-flow profit (roughly three to four times for a ~$1M-revenue shop, rising to five-to-seven times for larger, service-and-maintenance-weighted businesses with management infrastructure). Reflects buyer appetite/valuation dynamics in trades M&A.

“So a million dollar business that's kicking off $250 ,000 of cashflow buyers probably going to pay between three and four times cashflow for the business.”

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