Gentleman in a group gave a scenario and asked what multiple would be appropriate.
I said 4.5X
Another dude pipes up and says if I pay myself what I want DSCR is 1.1 otherwise using 4.5X it's 1.7 DSCR.
Then here comes a 3rd dude with a survey from Pepperdine University with a flowchart of why 4.5X isn't the multiple for the industry given the specifics.
This is the difference between reading a book and doing this daily for nearly 20 years.
It's the difference between internet "researchers" and in the field expertise.
It's the difference between studying negotiations and partaking in high level, high risk, highly intense negotiations.
A lot of people run their mouth, their fingers and run numbers BUT have never successfully acquired, negotiated, bought, sold or scaled million-dollar businesses.
Be careful about where you're getting advice and what advice you're getting. Because there's a lot of people with absolutely no experience selling people on the pipe dream of buying business with no damn business buying.
Need help? Reach out.
But rest assured I'm not going to tell you it's easy, cheap or fun.
It's normally work, requires money and is an emotional roller coaster. lol!
Ready to Buy or Sell? Reach out at 763.482.2681 or Email MK@BlueCollarBusinessAdvisors.com