Currently evaluating a niche B2B subscription business with $1M EBITDA with a 50% CAGR over the last 3 years. Industry is slow growing. Asking price is 15-20x EBITDA. While I like the business - the asking price seems way out of whack. Have looked at this top down and bottom up, closest I can come is maybe 6-10x. I realize benchmarking isn't the best approach here.

Question is - should I even both writing an LOI on this or just pass? Don't want to insult the owner and or waste time for the owners or myself.

How do you handle this sort of situation?