Earnings Growth

The Bigger Picture In Selling Your Business

What Does Earnings Growth Mean?

This is the actual or expected growth in a company’s profits over two comparable periods of time, such as year-on-year. As an example of actual earnings growth, if a company had a profit of £100,000 in 2013 and a £130,000 profit in 2014, then it has achieved 30% earnings growth.

A business with high earnings growth – especially at an increasing rate – is likely to enjoy high valuation and sale price.

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