Many factors go into determining an appropriate purchase price, including market comparables and discretionary cash flow analyses. But simplistically, VR Business Brokers generally gauges the enterprise or debt-free value of a company as a multiple of its prior year's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and or Discretionary Earnings.

Multiples depend on many factors, including the size of an organization, its leadership within an industry, historic growth rate and growth opportunities, profit margins, barriers to entry faced by competitors, fixed and working capital intensity, and the degree of customer diversity. Because each of these factors must be weighed individually, there is no one standard VR Business Brokers purchase multiple.