Value Map Explanation on Page 25 of the Valuation Report

The value map is a rough relationship between size and earnings and multiples - there is no specific place on the map identified for the particular company being valued.

With a multiple of around 3 times average earnings, the general idea behind the value map is that if the average earnings rise from $365K to more than $500K - the multiple will rise.  As it reaches $1m, the multiple rises further and so on and so on.

The relevance of the map is to simply explain to the owner that higher earnings will attract higher multiples so there is a synergistic impact on value as the company grows (both the earnings are higher AND the pertinent multiple is higher).