Searchers! 3 ways to save over $100,000 & lower your purchase price.

professional profile

January 25, 2024

by a professional from James Madison University in Washington, DC, USA

Searchers! 3 ways to save over $100,000 & lower your purchase price:
1. Agree to a purchase price as a multiple range of Adjusted EBITDA (3.5X - 4.5X) rather than a static $ amount following due diligence.

2. Demonstrate the true profitability of the business and its ability to generate cash flow. Present the sellers with the enterprise value of their business and the factors that may increase or decrease this value.

3. Stipulate that the business must support a debt service ratio of at least###-###-#### , often an SBA requirement for acquisitions under $5,000,000.

Are you in the final stages of an acquisition and have questions?

Send me a message; I can offer practical strategies to help you save $$$.

See full post here

https://www.linkedin.com/posts/patrick-o-connell-3b235177_3-ways-smb-buyers-can-save-over###-###-#### activity-7156318004874498048-3PN1?utm_source=share&utm_medium=member_desktop

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commentor profile
Reply by a searcher
from University of Notre Dame in San Diego, CA, USA
Thanks. Interesting that the LOI templates I have seen do not have the range idea listed for price.
commentor profile
Reply by a searcher
from University of Missouri in Kansas City, MO, USA
I like the approach and the transparency. Great thoughts.
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+11 more replies.
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