BACK OF ENVELOPE MATH ON E-COMMERCE DEAL

I'm curious if I'm thinking about this financial statement I'm looking at correctly:
- This eCommerce business has about $500,000 in annual profit
- So just swagging a multiple of 2.5x, it should be worth $1.25M
- It has a shareholder loan on the balance sheet of a little over $1.5M

So if the business can't justify a higher multiple, does that mean it's unsellable without discharging some of that debt, or some other deal complexity?



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