I've been looking for these types of deals for a few months now. It seems like they all had some big years during covid. Is there a good way to measure which business will have lasting growth in this sector as opposed to some good years? What are some multiples everyone is seeing out there in the marketplace? I'm seeing anywhere from 2-3X multiples here in the midwest.
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
On the commercial side if you're going after multifamily renovation companies watch out because the funds are running low after 3 years now of anemic transactions on the commercial market and lack luster rent growth.
Covid bumps should be done after###-###-#### I would look at year over year sales compared to the same time last year to see if they are on a similar trajectory or not and then push to understand their pipeline. This may be project work, but it typically has a long tail if you are dealing with architects drawing up the renovations, then applying for permits, you can start to come up with year end projections at this point pretty easily.