If you have resolved to make your company more valuable in 2017, you may
want to think hard about how your customers pay.
If you have a transaction business model where customers pay once for what
they buy and do not return, expect your company’s value to be a low single-digit multiple of your
Earnings Before Interest Taxes, Depreciation and Amortization (EBITDA).
If you have a recurring revenue model, by contrast, where customers subscribe
and pay on an ongoing basis, you can expect your valuation to be a multiple of
your revenue.