small business with excess inventory
by a searcher from Wilfrid Laurier University in Toronto, ON, Canada
Hi All -
Wondering if anyone has come across a situation where a small business where EBITDA is quite low but inventory is high to the point where a 3x multiple on EBITDA is lower than the book value of inventory. Is this a scenario where an asset valuation is more appropriate? Also, where anyone here has done an asset deal, with significant inventory - is it common to value it at book value?