BusinessExits commented on the following stories on BizSugar
>>Let’s say a normal P/E ratio is 15, and the projected earnings are $200,000 a year. If this is the case the business would be worth $3 million. Seriously?! You've seen any small businesses with $200K or so in earnings selling for 15x? Small businesses usually go for 2x to 6x (and 6x is highly optimistic). I'm afraid you're giving people the wrong impression with your mention of 15x. It's only very large (usually stock market listed) companies that go for over 10x."
And in addition to all that ... investigate your investors before you pitch to them. Know what they're looking for, the sector, the size, the attributes. Know what else they've invested in. Take the time to tailor your approach to each individual or group you're targeting."