Looking for feedback on an initial offer price for an LOI on an acquisition I am currently evaluating. It's a 5 year old online education business posting $2M in SDE on $3.2M in sales in 2022 as well as in the TTM. Has $6k AOV and $10k LTV, multiple recurring revenue streams, and a sizeable FB group and email list. Per the owner/broker, the business is fully staffed with documented SOPs in place (need to vet/review). The asking price is $6.65M. What's a reasonable initial starting offer?
More on Searchfunder
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.
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.
Here is a link to NAICS 611. In order for transactions comps to appear, you'll need to enter a 6 digit code.
https://www.searchfunder.com/bvr/sector/23