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Income Sample
Net After Debt Service
Manufacturing Business for Sale
Price:$4,150,000
net income EBITDA $1,543,363
90% or more financing
100% at 12% 10 Years $714,485
Net After Debt Service $819,877
1. Buy 1 at 2.5 (2-4)Multiple
2. Add to Gross Revenue change Multiple to 6 or 7
3. Go Public with growth – 10 or more multiple
To become wealthy, you may need to change some attitudes. We call it an attitude transplant. You don't need to adjust your attitude, you need to change it completely. In our Case the IV is Income and Value! We all need both.
Valuation Growth Explanation
Valuing private businesses often involves using multiples of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). For small businesses, the EBITDA multiple typically ranges from 2 to 4. This means if a small business has an EBITDA of $1 million, its valuation could be between $2 million and $4 million. Mid-market companies usually have higher EBITDA multiples, ranging from 6 to 7. For example, if a mid-market company has an EBITDA of $10 million, its valuation could be between $60 million and $70 million. When a company goes public through an IPO (Initial Public Offering), its valuation can see a significant jump, often increasing from 7x EBITDA as a private entity to 10x or more post-IPO, due to factors like increased liquidity, greater access to capital, and enhanced visibility..