It may sound obvious, but it bears repeating once in awhile, as John Warrilow reminds us.
Valuation experts rely on financial data (assets, revenue, gross and net profit, cash flow, etc.), management projections and market conditions to assign a value to a business being bought or sold.
When your business can charge premium pricing, is a market leader, receives “evangelistic” reviews from satisfied customers, sports repeat customers, maybe even has recurring revenues, and comes with a documented road map for operating an ongoing marketing system, the common business multiplier approach gets tossed during the buying process. Buying a strong brand creates entirely different set of mathematics…and marketing creates strong brands.