COVID CLARITY ON VALUATIONS

Question:

Currently in negotiating on the purchase of a manufacturing business based on a multiple of the last 3 years EBITDA and weighted to last 12 months as earnings over the last two years have improved significantly based on managing cost base...COVID in Sydney is now looking like threatening future earnings with hard lockdowns looking like they will be in place till Oct/Nov...

How would some of you more experienced buyers play this out with both the seller and the situation?



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