Hi all,

I'm working directly with the seller of a company and we're looking at 2.5x multiple on a sub-$1M EBITDA trades company, which is the fair market value for a company like this.

I submitted an LOI to the seller and he balked at the provisions for WC and AR, suggesting that we would need to increase price by $500K to cover those things.

I'm looking to chat with someone who has closed on a transaction like this, and who can shed light on how they worked through their negotiations on these issues. Also, how does the SBA consider these aspects when it comes to their inclusion in the price?

Thanks in advance,