Help with SDE Multiple in Cabinet Sales and Design

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February 11, 2025

by a searcher from Pomona College in South Kingstown, RI, USA

Looking at a small deal. Cabinet Sales and Design, no manufacturing or installation. $1.5mm revenue, $300k SDE. I am having trouble finding comps. Broker is using 3x which feels high for such a small deal, but I would love to have data to show him why. Any help is hugely appreciated.

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Reply by a searcher
from New York University in New York, NY, USA
I wouldnt get to held up on the multiple. 3x is a standard go to, but you can rationalize it to be lower if the business has been declining. Also there are other things to negotiate, (e.g. inventory, pre-paid cash from customers, etc...) My previous deal was 4x SDE, but if you took in to account of the the cash, equipment and inventory, I was paying 2x SDE.
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Reply by a searcher
from University of Colorado at Denver in Athens, GA, USA
I have some experience in kitchen design and sales and installation. Happy to share my thoughts on the industry generally and take any questions you have. Send me a message if interested and we can coordinate a call. Thx
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