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Depends on the type of biz, some are normally measured as a multiple of revenue, others as a multiple of net profit, etc.
And the multiples vary depending on the type of business. The cleaner, higher profit and more absentee a biz can be, the higher the multiple. Other bizs that can make a lot of money, but are more difficult to operate, get lower multiples. A liquor store, for example, which can be very profitable, has a lower multiple because it has to be open long hours, tough labor pool, danger, and the owner generally needs to be there a lot.
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