Home » Content creation » Business and technology » When selling a business, what multiple of EBIDTA can be expected for purchase price? The business generates approximately $800K in gross revenue.

You cannot estimate the asset value of a business purely on its gross revenues. I suggest you create an Information Memorandum (IM) document to give buyers a comprehensive view of the company.
I look at IMs regularly for an M&A funding coalition. Each pitch is different both in structure and in content. Still, an IM should include the following information;
Overview of the company: It should contain the date of incorporation and a historical snapshot of its performance since its inception. It is best to include quantitative and qualitative information regarding your company.
Offerings: The products and services your company sells should be clearly outlined. Kindly include details of the best performing product and service. Include the comparative share of this product or service in the company’s overall revenue. The section should contain a summary of the product features.
Reasons for sale: A buyer will want to know why the asset is being sold. It is important to provide detailed information here.
Financial Snapshot: Company’s assets and liabilities overview is important information that should be included in the IM. I am not recommending that should share the full balance sheet, but a summary and highlights of the company’s financials are necessary.
Ownership details: Buyers are always interested in information on the ownership details of the company. If it is a Founder owned corporation, include the resume summary of the owner.
The estimated sale value of the company depends on the enterprise’s perceived value in the eyes of the buyer. It is driven by the business need of both buyers and sellers.

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Sudhirahluwalia, Inc