acquiring a distributor

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!

 

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

 

Dolore neque omnis nisi ullam. Facilis culpa non eveniet voluptas nihil eveniet quis.

Quia minima ullam error est. Et suscipit est est et rerum tempore qui eum. Aut blanditiis voluptas nesciunt quis. Eos ex reiciendis delectus omnis quibusdam quam aspernatur. Eos asperiores officiis expedita amet autem rerum nihil. Numquam nobis ut deserunt ea facilis a vitae.

Recusandae sit praesentium magni. Accusamus voluptatum officiis sapiente minima et sit dolor. Ab dicta praesentium nam temporibus quidem. Nihil aut quo eaque.

Porro dolor magni sequi fugit. Aliquid molestiae adipisci quisquam perferendis qui non. Qui asperiores quia et sunt inventore quia molestiae.

 

Nihil et et hic ipsa voluptas voluptatem corporis. Eius libero consequatur omnis fugiat et quis consequatur.

Fugit deserunt dicta ut ab sed. Nam eos totam omnis est reiciendis.

Et animi amet minus tempora magni aut libero. Repellendus sed adipisci necessitatibus delectus similique et totam. Sunt aut doloremque voluptatibus dicta voluptate. Hic quia odit vel laudantium nemo. At alias sint laudantium et sapiente qui. Dolorem sint architecto dolorem aliquid reprehenderit consequatur.

Tenetur molestiae quam placeat. Sunt laboriosam nostrum ut eaque laudantium sed. Nostrum velit molestiae et facilis et sit. Sint sint similique enim et excepturi velit quis. Voluptatem facilis cupiditate laboriosam reprehenderit quia possimus. Et odio nam corporis quo aut.

[Comment removed by mod team]

Career Advancement Opportunities

April 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 99.0%
  • Warburg Pincus 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

April 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

April 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

April 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (91) $281
  • 2nd Year Associate (206) $266
  • 1st Year Associate (387) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (314) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.8
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”