Price/Multiple Feedback for Potential Acquisition
by a searcher from The University of Michigan - Stephen M. Ross School of Business in Chicago, IL, USA
Looking for feedback on an initial offer price for an LOI on a acquisition I am currently evaluating. It's a 5 year old online coaching and professional development company that has posted an SDE of ~$2m in 2022 and in the TTM. It has multiple recurring rev streams, a sizeable FB group as well as email list. The company is fully staffed with documents SOPs in place (need to vet/review). The asking price is $6.65M. What would be a reasonable starting offer?