SDVOSB currently under LOI, questions about EBITDA multiple

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Pepperdine University - Graziadio School of Business and Management
in Denver, CO, USA

1yr ago

SDVOSB currently under LOI, questions about EBITDA multiple

I’m an SDVOSB, and I’ve just signed an LOI with another SDVOSB whose owner is looking to retire. Their EBITDA is currently in the $150k - $200k range. I’m now actively seeking funding options. I’m aware of Live Oak’s GovCon/SDVOSB vertical(so I will be asking them as well about advice in this niche market,) but are there any other resources or funding sources you’d recommend?

While the LOI is in place, we haven’t settled on a final purchase price, so there’s room for negotiation as I complete additional due diligence. Given that I’m the owner’s only lined-up buyer and that the SDVOSB designation limits other options for the seller, I’d appreciate any insights on suitable EBITDA multiples for this type of deal?

1 Like

240 Views

reply by a searcher 1yr ago
from Carnegie Mellon University in Chapel Hill, NC, USA

What is the composition of the income? Is it tied to one or more agency contracts? How much time is left on those contracts? Multiple is lower for this SDE amount but may increase for stable income streams.

reply by a searcher 1yr ago
from University of Houston in Helotes, TX, USA

How real is that EBITDA? How much of a fight are you going to have winning the recompete for whatever contracts you have on the books now? Are you the source? is the work just a race to the bottom on price? Is the recompete going to be SDVOSB? Or something else? How’s the SPRS?

What multiple should you use? One that gets it as cheap as possible.