Company Valuation & Deal Structure

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by a searcher from Stanford University
in San Francisco, CA, USA

1yr ago

Company Valuation & Deal Structure

What do you think of the valuation and deal structure for this company? What do you think for the EBITDA multiplier for this deal?

It is a value add reseller of IT products. About 60% of the revenue annually comes from dropshipping the rest from extra work like imaging the laptops. There is no customer concentration. 15 years operating history and 20 full time employees. 95% of repeat customer.

2021: Revenue= 31.5 mm EBITDA= 652K (2.1% margin) 2022 : Revenue= 33 mm EBITDA=1,476,redacted% margin) 2023: Revenue= 31.5 mm EBITDA= 1,554,000 (5% margin) 2024: Revenue= 33.2 mm EBITDA= 1,674,redacted% margin)

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reply by a lender 1yr ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Happy to have a discussion and dig deeper. But in general it looks like a nice business. The biggest issue is the margins are low so it will take quite a bit of working capital to operate the business. You can reach me here or directly at redacted if you would like to discuss options.

reply by a lender 1yr ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Unfortunately there is not enough information for me to provide you that feedback. We would have to determine what type of working capital needs to stay in the business, what the revenue turns look like, etc. I would need much more detail. I am sorry. I would be happy to take a look at the additional details.