Hi guys,
I am wondering how to think about acquiring a distributor/reseller from a valuation perspective.
Say company A makes $XXm in revenue, 70% GPM but that 70% or more of the revenue comes from your company.
Would you value it like any other service business (x of EBITDA etc) or would you apply some adjustments to valuation because the largest part of the revenue comes from your company.
Thanks!
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Still a multiple of EBITDA based on most relevant comps and adjusting for specific business performance / model conditions and utilizing an LBO to triangulate what’s appropriate. - VP in Distribution Group
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