This is fantastic info Carl! I follow Codie Sanchez and haven’t seen her lay out this type of detail before. Looking to buy a complimentary business to mine here in Ohio. USA. Will keep watching your content!
Hi, The reason I see any business owner taking this deal is if he is old and wants out. Otherwise what's in it for him. He has sold the business and is still making the same amount every year for just four years.
Carl if I take 450k EBITDA / 220k to seller and add the 55k of existing payments I get about 1.64 debt to service ratio. Or do you not count existing debt payments you will inherit? Thank you!! Bill
Almost 1.4m in debt in the capital structure 😮 Assuming banks will have to approve the new owner as the previous owner has, most likely, signed a PG on the debt.... Business is highly levered
Hey Carl, Do you have any materials to help with valuation on a business heavy with RMR? And if so, any changes to recommended deal structure/repayment plans?
