Depends on a bunch of factors but generally 2-5x SDE/EBITDA. in this particular case, business value is next to none. Would pass on this deal.This quote is hidden because you are ignoring this member. Show Quote
Depends on a bunch of factors but generally 2-5x SDE/EBITDA. in this particular case, business value is next to none. Would pass on this deal.This quote is hidden because you are ignoring this member. Show Quote
Last edited by Marsh; 11-20-2022 at 11:48 AM. Reason: can't spell
I'm being deliberately misleading here on a couple of details, but y'all have given me the education I wanted.
There's also a non-financial reason to purchase this business in terms of efficiencies and cost reductions for a different company.
This is why I love beyond, a true wealth of knowledge.
This changes everythingThis quote is hidden because you are ignoring this member. Show Quote
“Don’t worry guys, I’ve timed this market perfectly”This quote is hidden because you are ignoring this member. Show Quote
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
Timing the market is my favourite asset class.
Owner operator IS the business and if he’s like 99% of all the other old school twits who think goodwill is a thing, the asking price will not ever make any sense and the business will wither and die with the owner
Almost as important as the business would be the real estate that it resides in. Is it a lease, is it owned by the O/O, does it sell too?
IMO unless there’s some grand plans to makes this take off, a group of people to buy this business should be approached with extreme caution
It’s all a good idea until money decisions have to be made between partners
It ALL depends on the business.
Oh I've had two PMs asking me what company it is. I'm not telling. The deal may or may not happen, but I can gain nothing by being more specific, other than potential legal trouble. I got what I needed from this thread.
Cmon.. tell us
https://www.realtor.ca/real-estate/2...gary-chinatownThis quote is hidden because you are ignoring this member. Show Quote
This quote is hidden because you are ignoring this member. Show QuoteThis quote is hidden because you are ignoring this member. Show Quote
Gross. I would never want GW on the books for a business like this.This quote is hidden because you are ignoring this member. Show Quote
A business like what?This quote is hidden because you are ignoring this member. Show Quote
Three dudes that do ad-hoc work.This quote is hidden because you are ignoring this member. Show Quote
maybe it's a mismanaged social media company, currently too heavy with software engineers.
.
Or maybe it's a tire installation business?
.
or maybe it's a jewlery and watch retail store?
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or maybe hand-made cowboy boots?
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or maybe not today satan.
You're making too many assumptions about the value of the business.This quote is hidden because you are ignoring this member. Show Quote
All I'm saying is that putting GW on the books is a bad strategy. Make it "management fees" or something that you can expense right away.This quote is hidden because you are ignoring this member. Show Quote
Accounting isn't the relevant part of this discussion. If you are paying more than the assets on the books for a business, then you are paying for intangibles. You have no idea what that is worth without knowing the specifics of the business. If the owner won't sell it to you for less than X over book value, and you are willing to pay that, then bingo bango, the business has "goodwill value." The entire tech industry is built on this concept.This quote is hidden because you are ignoring this member. Show Quote
Yes if you want to discuss unicorns and sunshine your take is great.This quote is hidden because you are ignoring this member. Show Quote
Me? I want to maximize my after tax income. Your analysis is worthless for that.
Regular businesses have goodwill value - happens all of the time.This quote is hidden because you are ignoring this member. Show Quote
I have a small yoga and fitness studio I'd sell you.
Would be a great addition to the portfolio with the art room... Think about it, art room yoga!
For you, special price, much low.