The Myth:
You can apply a standard revenue multiple across all industries.

The Reality:
Revenue multiples vary significantly depending on margins, risk, industry dynamics, and growth potential. What works in SaaS, for example, doesn’t work for manufacturing or retail.

Why It Matters:
Applying the wrong multiple can lead to huge valuation errors — especially in SBA lending and acquisitions.

Practical Tip:
Select and adjust multiples based on industry, profitability, and company-specific factors — not one-size-fits-all rules.