Having trouble agreeing on a sales price. Business has been under current ownership for almost 10 years. First 9 there was no profit, year 10 the business is profitable. Seller feels ebitda based on last 3 years should be 5X. Anyone with experience here weigh in? Owner is also still hands on. Thanks. Pretty new to this.
The price is what the market is willing to pay. How long are you willing to wait to get your money back?
What the seller. Wants should be pretty irrelevant to you.
You aren’t buying stress free income generation here, you will have to work at it. So If it was me I would be looking at 2-4 years ebit.
What I do afterwards to improve the position of the company is none of the sellers concern. If they were able to do it then it would be done.
Don’t let them guilt you into overpaying