So I saw a business in a tangential industry to my own company is in. The adjusted “EBITDA” for 2019 through 2023 was $233k, $88k, $496k, $1450k, $1,500k. That’s a mean of $753k and a standard deviation of $603k. The business was hollowed out during the pandemic. And they told me they can’t get me numbers from before###-###-#### I reluctantly made an offer. They were insulted and said that they have standing offers of $5-$6MM. That’s a 7.3x EBITDA multiple if the price is $5.5MM.

So my question is two fold:
1) If you have a 7.3x EBITDA offer on a business that has a standard deviation as a percentage of EBITDA at 80% in a basic project based non high growth industry why on earth would you not sell that tomorrow?
2) Who would pay that for a corporate vents company?

Looking for perspectives on this.