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Episode Info: like your target return on ad spend goes from two to ten, or something, to just generate as many profits as you can. The growth story and the profitability story determine very different kinds of buyers, and very different multiples, as we discussed multiples in the last episode. If you are growing, and you choose that growth story to tell, you sell that in your deal book. Then, you could also argue that you get valued off of multiple of revenue. Conversely, if you're on board with the profitability story, you want to maximize that owner's discretionary cash flow, because that's the thing that's going to drive the multiple of the business, and the ultimate valuation. So, I'd say, number one, decide on what story you want to tell. Number two, you want to reduce risk in the business. We talked about how valuations go from nothing for the smallest, riskiest businesses, all the way up to the public equity markets,...
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