Business valuation multipliers are a structured way to understand the worth of a business. It measures the value of a given business at any point in time, by taking into account certain quantitative and qualitative characteristics. The multiplier is based on a series of calculations which take into consideration factors such as market size, competition, sustainability and potential for growth. By understanding how these different elements impact the overall worth of a business, it’s possible to make accurate decisions relating to mergers and acquisitions, or when considering if new investments are viable. In short, business valuation multipliers are essential tools to help investors and entrepreneurs alike understand the true value of their businesses.