Multiple for larger business?
Does anyone have insights into current multiples for larger businesses (~$5M EBITDA)?
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by a searcher
from Harvard University - Harvard Business School
in New York, NY, USA
in New York, NY, USA
5yrs ago
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by a searcher
3yrs ago
from Texas A&M University in Johnson City, TN, USA
from Texas A&M University in Johnson City, TN, USA
Reviving old thread. Subway to sell for 6.75x EBITDA @ $750M with ~50% leverage: redacted
I've been learning more about deal ceiling, surprised that many companies even $5M EBITDA+ seem to still go in the 3x-5x range.
For us as buyers of much smaller entities- does this help us justify sub 4x multipliers to ourselves and the sellers we work with? I would say yes. Subway is a household name, yes with specific industry, but even they have not "strategic" exit at greater than 6.75x even at their scale and size?
I've been learning more about deal ceiling, surprised that many companies even $5M EBITDA+ seem to still go in the 3x-5x range.
For us as buyers of much smaller entities- does this help us justify sub 4x multipliers to ourselves and the sellers we work with? I would say yes. Subway is a household name, yes with specific industry, but even they have not "strategic" exit at greater than 6.75x even at their scale and size?
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by an intermediary
3yrs ago
from University of Pennsylvania in Durham, NC, USA
from University of Pennsylvania in Durham, NC, USA
According to the article, the $5 billion debt financing package is 6.75x EBITDA ($5 billion / $750 million): "The debt financing is based on a mix of loans and bonds and its size is equivalent to 6.75 times Subway’s 12-month earnings before interest, taxes, depreciation and amortization of about $750 million, the sources added." The asking price for the business is $10 billion so that would be 13.3x EBITDA.
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