General Practice, Solo & Small Firm
DivisionMagazine
Volume 17, Number 1
January/February 2000
Table 1: Arriving at a Reasonable Multiple
Valuation Factor
Multiplier Points
Low Range
High Range
Base multiplier
.50
1.0
Positive factors:
l Core client group of the firm is fairly stable
.15
.25
l Seller is young enough to effect an orderly succession
.20
.30
l Firm is very profitable
.50
.75
Negative factors:
l Firm is too reliant on seller for rainmaking and leadership
-.15
-.25
l Firm is tied to a bad regional economy
-.15
-.25
l Valuation multip
1.05
1.80
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