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’s a business owner even survive if not profitable for 9 years. Was it not profitable on paper only and the business owner was running tons of personal expenses through? Seen this happen and they increase the multiple to align more with true value…
Also are you going through a business broker…because they can explain how they valued the business (usually bullsh-t but at least you hear a story)