EBITDA MULTIPLE FOR CAR DEALERSHIP
We are looking at a dealership, similar to a car dealership, to acquire. It is not exactly a car dealership but instead sell other high value assets. They provide follow on services to the assets they sell. This is a commodity business with no differentiation. EBTIDA margin is 6% as the business incurs a high cost to purchase the assets and then resell them. Revenue is VERY high but, again, EBITDA is 6%.
What would you offer as an EBITDA multiple?