Question regarding small company valuation with real assets
How are real assets (property and vehicles) typically accounted for in an LBO?
The company I'm looking at has USD 4m in EBITDA, no debt, and has warehouse worth USD 5m and a fleet worth USD 2m (post depreciation).
Since I'm here, it also has USD 2m in account receivables vs 500k in payables and another USD 1m in inventory.
Assuming a 7x valuation multiple. How much should the buyer actually pay?
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