I'm a self-funded searcher about to submit an LOI, and I'm seeking advice on the valuation. Some of the business attributes:
- ~$2.5M EBITDA
- Home services business
- Strong management team in place staying with the business post-deal
- High recurring revenue (70%+) with very low churn
- Diversified revenue streams
- Long, profitable track record (20+ years in business)
- Ample growth/expansion opportunities

It's going to be a competitive process. I want the deal but obviously don't want to overpay. My worry is that this will command a purchase price significantly higher than like a 4x EBITDA. For a business like this, is it feasible to push the valuation to 5x EBITDA or higher for a self-funded searcher? Any thoughts on capital structure (SBA + conventional loan + investor equity)?

Thanks!