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.
How fast is it growing on the top line and bottom line? For one dollar in revenue increase how does that hit the bottom line? do you have long-term contracts and what is revenue concentration like among the top 10 customers? Top 2?
If you scaled two twice the size, how much fixed costs would have to be added ? Is that normalized for owners comp and if not, can you add that back in and make it as if a manager was in your place or whatever role you fill.
People will give you multiples for your industry, but that means nothing because it’s really about how your actual business grows and scales and what kind of risk it has.