small business with excess inventory

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by a searcher from Wilfrid Laurier University in Toronto, ON, Canada

Hi All -

Wondering if anyone has come across a situation where a small business where EBITDA is quite low but inventory is high to the point where a 3x multiple on EBITDA is lower than the book value of inventory. Is this a scenario where an asset valuation is more appropriate? Also, where anyone here has done an asset deal, with significant inventory - is it common to value it at book value?


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