Adler & Co.
1035 Pearl Street, Suite 400
Boulder, CO 80302
Jay Adler, Principal
If you might be interested in exploring "a liquidity event," we would be happy to provide you with our opinion regarding general valuation parameters and whether a complete or partial sale to one of our clients or another financial acquirer might make sense. Our valuation and consultation services are free to company owners.
The value of profitable companies is arrived at by applying a "multiple" to historic EBITDA (earnings before interest, taxes, amortization and depreciation). If the company has any long-term debt (debt other than trade payables), that is typically subtracted.
The general range of possible multiples is from 3 times EBITDA to over 9 times EBITDA. The multiple that is appropriate for any given company is a function of
Your goals: control not control, management role post close, desired equity roll (if any), etc.
Financial Specifics: adjusted ebitda, ebitda margins, growth rate, stability of cash flow, etc.
Market issues: customer concentration, barriers to entry, market trends, etc.
Get in touch with the Adler & Company Team.