EBITDA Multiples for Small Businesses — What’s Realistic?
EBITDA Multiples for Small Businesses — What’s Realistic? Understanding the value of your small business is crucial when considering a sale or investment. One key metric used in valuation is EBITDA multiples, which provide a benchmark for comparing different businesses. We simplify the comparison by focusing on core profitability, excluding financing, taxes, and non-cash expenses. […]
Typical Search Fund Deal Sizes — Are You in Their Range?
Typical Search Fund Deal Sizes — Are You in Their Range? Understanding the dynamics of search fund acquisition is crucial for entrepreneurs and investors navigating the lower-middle-market landscape. According to the 2024 Stanford GSB Search Fund Study, the median capital raise for 2022-2023 was $550,000. We will explore the factors influencing these acquisition sizes and […]
How Private Equity Really Prices Small Businesses
How Private Equity Really Prices Small Businesses Understanding the valuation of small businesses is crucial for business owners considering their options. Private equity financing is a general term for funding for small, mid-sized, or large closely held businesses in which an investment group buys the company’s common or preferred stock. We help business owners navigate […]