|
|
Article: What's your company's value multiplier? (Industry Trend or Event)
- Article from:
- Soft-Letter
- Article date:
- June 30, 1997
- Author:
CopyrightCOPYRIGHT 1997 Aegis Resources, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
"Putting a dollar value on a software company is always a subjective process," says M&A expert Barry Goldsmith of Updata Capital. "The tangible numbers--revenues, profits, balance sheet assets, growth rates--are just the starting point. It's usually the intangibles, like corporate culture and management attitudes, that create the biggest multiplier effects for corporate value."
Goldsmith, whose ten-year-old firm has handled some 140 merger and acquisition deals worth a total of $4 billion, points out that "would-be buyers may not talk much about intangible values--but you can bet they look very, very closely at these issues when they check you out."
Goldsmith ...