Well whatever the valuation I hope they do well with the sale. Great people, I have visited 100% of the time I go to Calgary and even after long absences they remember who you are. Sad to see it go, whenever that day is. Hope I get to go again!
Well whatever the valuation I hope they do well with the sale. Great people, I have visited 100% of the time I go to Calgary and even after long absences they remember who you are. Sad to see it go, whenever that day is. Hope I get to go again!
Originally posted by SJW
Once again another useless post by JRSCOOLDUDE.
Originally posted by snowcat
Don't let the e-thugs and faggots get to you when they quote your posts and write stupid shit.^^ Fact CheckedOriginally posted by JRSC00LUDE
I say stupid shit all the time.
1X earnings would be fair.
I wasn’t criticizing the business in any way. Love Thi Thi, comments on value expectations in a sale are completely different than comments on the business or owners.
If that wasn’t clear.
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
Kinda surprised it wasn’t listed for $888,888.88
Beyond group buy?
I have heard this same general guideline for small businesses many times. I think it obviously will vary business to business and the profitability factor. I certainly think there would need to be a competition clause for sure or a popular person in the community could just turn around and open a new location and steal all the clients back.This quote is hidden because you are ignoring this member. Show Quote
Personally I would be happy if I could get 3.8mil for my company using the same valuation formula. I will even let you hire me back 6 months a year and keep my name attached for marketing purposes! Any takers??
I'm actually looking at an opportunity buy a business right now that has some pretty decent current revenue. Well, not my money, but I'm on the team doing the evaluation. Plan is to keep the current owner/boss on a consulting contract for at least 2 years to prevent him opening a competitor.
Not subs or tires though, so not sure if the multiples apply. They do have a facility in California, so maybe I'll get work trips there in the future. A guy can dream.
I do not think 2x Annual Revenue is a good valuation metric for a small business, that seems wildly optimistic.This quote is hidden because you are ignoring this member. Show Quote
Unless for some reason you have line of sight to that revenue growing substantially in future years.
*Not financial Advise
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
Yeah I agree... I mean just as a basic quick calculate number sure that can work, but in the end anybody buying/selling an existing "viable" business should be doing a proper assessment before committing to anything.This quote is hidden because you are ignoring this member. Show Quote
"Small business" could mean a shitload of different things. A landscaping business vs. tire & wheel vs. food/restaurant vs. construction (etc., etc.) would all have different unique levers on their valuation. Across all the different types of small business, 2x revenue valuation could very well be the consolidated average, despite there being a wide disparity between individual data points (i.e., business types).This quote is hidden because you are ignoring this member. Show Quote
Is 'Revenue' a good metric for valuing anything?This quote is hidden because you are ignoring this member. Show Quote
Maybe that's how WeWork came up with a $47 bil valuation.
If revenue somehow is actually a great valuation method for anything plz don't roast me @suntan
Revenue is a terrible metric for valuation esp for service businesses.
til
Most companies sell for 2-6 times SDE. If you look at all business sales under $1 million for the last 10 years, the average multiple of SDE is 2.2 times but sometimes the multiple is not as high as the seller wants or thinks it should be.
I am user #49Originally posted by rage2
Shit, there's only 49 users here, I doubt we'll even break 100
Earnings =/= Revenue
*Not an Accountant
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
this is about right.This quote is hidden because you are ignoring this member. Show Quote
If the seller wants to get an elevated multiple based on potential (which they conveniently have not captured themselves), then the extra turns on cash flow should be performance based. For a business that has relatively low barriers to entry, an easily replaceable product, and not a ton of brand equity, then a 2x cash flow multiple is pretty generous considering that you are basically buying yourself a job.This quote is hidden because you are ignoring this member. Show Quote
Last edited by Buster; 07-20-2022 at 11:10 AM.
Had lunch here today, 10/10
iIRC, I think Colt Engineering, CH2M-Hill and Jacobs were all purchased for very near 10x EBITDA.This quote is hidden because you are ignoring this member. Show Quote
Therefore, that's the multiplier for O&G EPC.
How this relates to a small restaurant = (bugger all)^0.6
And people buy Tesla stock at 102x.This quote is hidden because you are ignoring this member. Show Quote
Wow, thats a very standard valuation for midstream companies. Surprised EPC's that could lose most of their business at a moments notice could fetch that.This quote is hidden because you are ignoring this member. Show Quote