Fair Valuation for Off-Market Acquisition?
How do you all recommend coming up with a fair valuation if a broker isn't involved?
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by a searcher
from The Tulane University of New Orleans
in New Orleans, LA, USA
in New Orleans, LA, USA
1yr ago
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by a searcher
1yr ago
in Raleigh, NC, USA
in Raleigh, NC, USA
back into the cost based on cash flow. The multiple is the subjective piece- maybe use a 3rd party that is less cost than a broker but to remove some ambiguity
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by a searcher
1yr ago
from Harvard University in Bellevue, WA, USA
from Harvard University in Bellevue, WA, USA
When doing off-market deals, the best first step is to get an NDA signed and review the financials. From there, normalize cash flow (SDE or EBITDA), then apply fair market multiples based on comps in the space. It may take some coaching to help the seller understand how businesses are typically valued -- especially if they’re unfamiliar with EBITDA or industry norms. The key is grounding the conversation in the numbers and staying aligned on a fair, market-based framework.
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