Brokered Business

by a searcher from Stanford University - Graduate School of Business

3 years ago

Anyone have experience/tips for negotiating down SDE multiple and add-backs of broker listed businesses?

5 likes
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9 comments

admin from Massachusetts Institute of Technology - MIT Sloan School of Management

Searchfunder is in the final stages of negotiation with BVR DealStats. We hope to have it live & integrated similar to IBISWorld in the next few weeks.

3 years ago | like reply | 5 likes

intermediary from Wake Forest University - Schools of Business

Ask for their source of comps (we show our comp analysis in our CIM). They should be using PeerComps/DealStats/etc. not rules of thumb, broad non-industry specific multiples, or BRG. As for the addbacks, at the end of the day, the company/transaction has to get through the underwriter and the third-party appraiser, and both ask for documentation. Note, the UW will not accept some addbacks that the appraiser will -- as they are performing slightly different tasks and analysis, so just because the UW says they can't use an addback, doesn't necessarily mean it isn't valid for valuation purposes.

3 years ago | like reply | 2 likes

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