How to Handle Assets and Liabilities in a Minority Acquisition Deal?

January 29, 2024
by a searcher from Harvard University in Nashville, TN, USA
My business partner and I are acquiring 30% of a $10M rev, $1M EBITDA business.
Buying the cashflow at EBITDA multiple times 30% is simple enough.
But how should we treat assets like AR, FF&E and liabilities?
Do I just pay for 30% of the total equity at closing?
What if it fluctuates at time of closing?
The current owner plans to stay on while I help him optimize the business.
from Loyola University of Chicago in Chicago, IL, USA