How would you value a company that has reported net losses 4/5 years

by an investor from Purdue University

5 months ago

How would you value a company that has reported net losses 4/5 years? Would the SBA even lend on something like this?

0 likes
107 views
7 comments

intermediary

I have seen several businesses, mostly construction companies, where the founder died, and the spouse and general manager tried to keep the business afloat, but unfortunately, they didn't have the chops and EBITDA was negative for several years. Does a company with $2.5MM to $10MM in revenue with negative EBITDA that is poorly run have no value? I think there is huge value to a buyer with turnaround experience.

5 months ago | like reply | 0 likes

professional from University of New Haven - College of Business

Valuation is a forward looking exercise and as such waht are the prospects for the company? The other posters have addressed the lending issue -

5 months ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Sorry, but you are a broker's worst nightmare ... and how to fix it

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.