Downsides of "buying a job" below 750k+ EBITDA?

by a searcher from Yale University - School of Management

3 months ago

I have read and seen many deals that float higher than 750k+ EBITDA range and would love to understand more on the risks of buying anything smaller than that.

This is assuming multiple floats around 3x EBITDA. I get it is more of a "job" once you buy a company in the lower range but if lets say I am buying a 500k ebitda business at 1.5m, and when I pay loans per year, let's estimate 200k, its still net profiting around 180k after taxes. Obviously math is not that simple but I would love to know your thoughts.

13 likes
1360 views
122 comments

searcher from Stanford University

Awesome.

5 days ago | like reply | 0 likes

searcher from University of Oxford

I normalise the EBITDA for management salaries otherwise you are just buying a job.

6 days ago | like reply | 0 likes

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