Chapter
Valuation and EBITDA for Private Companies
21:26 - 24:56 (03:30)
The speaker discusses typical valuation methods for private companies, including the cash at close plus earned out earnings. They also mention common EBITDA numbers for business owners and an aerospace company they previously examined.
Clips
The EBITDA for a company with $3 million in owner earnings is typically around $4 million, based on the types of companies that are typically looked at such as an aerospace company.
21:26 - 22:37 (01:11)
EBITDA
Summary
The EBITDA for a company with $3 million in owner earnings is typically around $4 million, based on the types of companies that are typically looked at such as an aerospace company.
ChapterValuation and EBITDA for Private Companies
Episode#61 - How to Buy, Manage and Grow Cash-Flow Positive Businesses + Corona Virus Impact on the Economy
PodcastMy First Million
The price range for acquiring businesses in a specific segment is typically around three and a half to five and a half million dollars, with a cash at close price tag of about $10 million plus additional money earned out.
22:37 - 24:56 (02:18)
Business Acquisition
Summary
The price range for acquiring businesses in a specific segment is typically around three and a half to five and a half million dollars, with a cash at close price tag of about $10 million plus additional money earned out. The cash flow is then reinvested into buying new equipment and inventory, among other things.