Multi-Unit Franchisee Magazine Issue I, 2014 | Page 92

ExitStrategies
By Dean Zuccarello

The Myth of Multiples

The buyer paid a high single-digit multiple for the business. Upon closing, the
buyer initiated technology upgrades and
new manager incentives to help drive the
bottom line. In this transaction, the buyer
increased the value of the business by more
than 50 percent in one year. The effective
hether the mergers and
multiple was much lower after one year.
acquisitions market is
• A buyer purchased stores fr