How to Value a Private Company Part 2 - Case Study Examples

How do you value a private company? What valuation approach is relevant for small business valuation with no market comps available? How do you normalize EBITDA for valuation purposes?

In this video I walk through four different valuation exercises looking at growth and underperformance situations and how that influences the value of a company. By anticipating the value drivers and value limiters from a buyer's perspective, you can anticipate the level of market demand for your business which translates to a higher or lower multiple range. Valuation is more art than science so please note that these factors may not apply to all companies so please apply this methodology with caution and seek professional help before selling your business. This is the approach we use at Roblee Capital to assist business owners in determining their business value prior to selling their business.

The four companies analyzed in this video are:

1) Valuing a HVAC Company with $900K in EBITDA
2) Valuing a Metal Fabrication Business with $750K in EBITDA
3) Valuing a Home Renovation Service Provider with $3.7MM in EBITDA
4) Valuing a Printing Business with $500K in EBITDA

Click The Link Below To Purchase the Letter of Intent (LOI) Template For Asset-Based Acquisitions on the FinanceKid website. Thank you for your support!

https://www.financekid.ca/products/le...

If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! If you want to reach out, contact me at;

[email protected]

If you are looking to sell your business and would like to learn more about Roblee Capital, please reach out to me for an introductory call. You can contact me through email or through my LinkedIn at;

  / robert-bezede-20ab8a6a  

Roblee Capital is a Toronto-based M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buy-side M&A services. We work with Canadian-based business owners looking to sell their lower mid-market business. If you are a Canadian business owner looking to sell or buy, please reach out so we can connect at the link below:

https://www.robleecapital.ca/