Hi All,

I'm looking at a business that does both Sheet Metal Manufacturing and Roofing Contractor work (25% / 75% respectively). It does ~$2.5m EBITDA / $3.25m SDE. I've done a fair amount of research that would suggest 2.75x - 3.5x EBITDA is an appropriate valuation range. Does anybody have insight into how accurate this range is? Relatedly, if I can successfully scale the business to $5m+ EBITDA, how much (if any) multiple arbitrage might exist on the backend? My research seems to indicate that I should not expect much value arbitrage on the back end, even if I successfully 2x business over the course of ownership.

Any thoughts would be welcome! Thanks so much!