july 2006 volume 3 issue 7 published by capstone financial group 11 palmetto pkwy suite 104 hilton head island sc 29926 p 843 689 6450 f 681 5938 www capfg com a publication focused on mergers acquisitions and corporate finance in the automotive aftermarket industry q what s multiple these days there not one far most prevalent question investment bankers are asked company owners is multiples you seeing of course relates to ebitda earnings before interest taxes depreciation amortization that used value however fact this derived from variety factors cannot be quoted universally when buyers analyze business they interested its history but only as it growth potential under new ownership order ascertain future look at following items square4 historical sales trends segment level sustainability gross margins number types distribution channels product customer concentrations percentage products manufactured house
