Market Multiple Adjustments

Get a Grip on GRP

Jim Budyak

Jim Budyak, CPA/ABV, CFA, ASA, senior vice president of VRC’s Milwaukee office, authored an article featured in Business Valuation Update. BVU has been the voice of valuation professionals and includes new thinking from leading professionals.

In a prior article, I discussed certain considerations in valuing a multinational company. Noted in that article is a useful due diligence framework, Company-Country-Currency-Sector. Part of that article also briefly discusses the fact that appraisers use comparable data (comps) and benchmarking a subject entity with its comps focusing on the attributes of growth, risk and profitability to ensure the market prices of comps to the pricing of a company has been effectively bridged. GRP contributes to the story from a qualitative and quantitative perspective in terms of why an EBITDA or price-to-revenue multiple is selected for the subject entity being valued.”


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