2 years ago
Multiples is not a un common occurrence in a global economic system , the challenges we have in developed and un developed economies is perhaps embedded in the manner in which these income streams are noted and recorded . The telecoms and media industry has created a global conversation about commodification of public and private information . The best commodity in my view is information but more importantly good and reliable information/data. In my view we walk a narrow road towards clarifying what is profitable and has potential to grow scale and what is not . In any business it is important to have a strong focus on cooperate governance and compliance to financial controls .A business that makes $1m in turnover can easily be viewed as a growing business with strong potential if only viewed from revenue collection perspective on the other hand it might have weak regulation and therefore is expose to risk , the understanding of EBITA margins speaks to a relationship between risk and opportunity. It also highlights the opportunity cost to expand . If you able to realize multiple streams of EBITA it simply means that your value proposition has find a market fit and is servicing the needs of your customers.I suppose the question one should ask is when this occurrence is observed what does it say about market trends and consumer behavior and what is the next step in your business when this milestone is reached.Where there is growth there is opportunity which must be taken advantage of in such a competitive world , risk although unavoidable can be mitigated by the gain both financially and otherwise. First movers advantage that is what we call it in South Africa.Hope above can assist you’r question
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