Historical revenue growth of >30% clearly positions your business as an exciting potential growth story in the future, as it demonstrates not only the underlying vitality of the product/service/industry your business is operating in, but notably demonstrates an ability to capture and execute against surging demand for your product.
Historical revenue growth of 15-30% suggests the business is poised for further strong growth. The context of the product/service/industry your business is operating is is critical to further understanding whether the busienss is keeping pace with a fast growth area or is actually taking market share from incumbents. Either way it's a great story.
Historical revenue growth of 5-15% suggests the business is healthy and taking advantage of opportunities to grow. The context of the product/service/industry your business is operating is is critical to further understanding whether the business is keeping pace with a fast growth area or is actually taking market share from incumbents. Either way it's a good story.
Historical revenue growth wobbling between -10% to +10% suggests the business is relatively stable, but does not give a buyer great confidence in the business' ability to grow and prosper without a meaningful change in strategy.
Historical revenue growth wobbling between -20% to +20% suggests the business is relatively unstable, and raises questions in potential buyer's minds re. the ability of the business to hold its own in shifting markets. Internal or external factors may be in play, either way they'll have to be addressed.
Historical revenue growth swings of greater than +/-20% each year suggests the business is very unstable. Buyers will be focused on determining ways to smooth out your business' top-line variability.
Historical revenue declines of 5-15% suggest the business is challenged and may need a new approach. The declines are not so large that they will alarm a buyer unduly if the overall cyclical business environment has been shrinking at a similar pace, but any other context would damage a valuation.
Historical revenue declines of 15-30% suggest the business is seriously challenged and requires a new approach. Even if your entire industry has been suffering, buyers will be seriously concerned and weaken your valuation as a result.
Historical revenue declines of >30% suggest the business is seriously challenged, is in need of a turnaround and is effectively in distress. Even if your entire industry has been suffering, buyers will be seriously concerned.