I sourced a proprietary deal through an industry contact that I know and trust. Basically industrial distribution, <10 customers, <3 vendors. High cash flow (1.3mm). Has a very lean team for business like this with a single order to cash person, a single sales VP and a ceo that works 3 hrs per week on the biz. Sales and OTC have both met with me and are willing to sign an employment agreement and non competes. The income is verifiable but there is very little by way of contracts on vendor or customer side. I know the industry very well and I am very confident I can grow the customer and vendor base. I agreed to 4X multiple because of the generous seller financing (seller retaining 19%, financing 40% forgivable on margin performance). We’ve agreed verbally on LOI, but it has not been signed yet. Industry: industrial chemicals Revenue: 9mm SDE: 1.3mm Am I overpaying? Cashflow net of debt leaves plenty for me and investing to grow.