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?
EBITDA Multiple for Car Dealership
by a searcher
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I worked as a accountant for a multi-car dealership in NC and cash flow swings are dramatic with high dollar retail items. Despite there being a lot of competition the name of the game was volume since margins were so low.