Mark Osborne explains why sellers chase revenue growth as a vanity metric, but buyers actually value companies based on risk, not top-line numbers. A lower-revenue business with a better risk profile can command a higher multiple than a high-revenue one.
I want to sell for as much as possible. And so, I got to grow my top-line revenue. And that's sort of the vanity metric that they have in mind and that's driving them. But as you described, it's really that relationship to risk that determines the multiple. And on a lower top-line revenue number,
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