How to find fair deals while governments keep on supporting a weak economy

searcher profile

August 19, 2020

by a searcher from Hult International Business School in Brussels, Belgium

When looking at acquisition, most companies are asking EBITDA multiples which are highly overrated. This even during COVID pandemic and while having bad performances. In my belief, mainly due to low bank interest and central bank support from governments.

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Reply by an intermediary
from Northeastern University in Boston, MA, USA
Many buyers are in the market and sellers see that as high demand. When you look deeper, the standard hold true: buyers only want great companies at good prices, or good companies at great prices. Also, most sellers think their baby is beautiful, until Their advisor gives them a market valuation - not so beautiful on many cases today.
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Reply by a searcher
from Indiana University South Bend in Granger, IN, USA
Anecdotally, our company and others in our area are seeing a pretty good rebound in revenue. It may be tough for sellers to want to take a reduced multiple when they feel like the demand is still there.
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