I've. a deal in front of me. It's a Mobile App with around 350k EBITA with around 350k Cash and I am putting together this deal. Total Price 1.4M. It's basically 3X EBITA + $340k for the team to stick around for 1 year. I am an Engineer can probably handle the engineering part. It's stable and running for the past 10 years
For payment, this is the structure.
a) 25% at the time of closing ($270,000) b) 25%($270,000) Paid at 180 Days & 25%($270,000) on 365 Days c) 10%(135,000) Paid every 90 days
There is also a performance clause that revenue shouldn't drop below 10% ( Price adjustment in that case) and if it increases by 10%, they'll be paid a bonus ( TBD).
They've not yet accepted but wanted to get some feedback here. My only concern is that it's too small of a deal and I don't need outside capital to fund the deal . Cashflow + bank balance pays it off however is it even worth to spend the effort or should aim for something above 1M EBITA .
Currently running a business which is on track to 7 Fig EBITA
Acquiring Saas Companies ?
More on Searchfunder
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.