Everyone's always said 1.5x annual revenue around here. I don't know how or why that started, but that answers your question.
Josh Luthman Office: 937-552-2340 Direct: 937-552-2343 1100 Wayne St Suite 1337 Troy, OH 45373 On Wed, Apr 13, 2016 at 11:23 AM, Travis Johnson <[email protected]> wrote: > Hi, > > I'm not sure where you got the 1.5 times revenue number. Every single > company I have invested or purchased is based on their EBIDTA number, not > revenue. Generally I am around the 3x annual EBIDTA. > > Travis > > > On 4/13/2016 9:14 AM, CBB - Jay Fuller wrote: > > � > Good morning - > � > Today we received notice at least one of our shareholders wishes to share > his stock.�� > We have another shareholder who is the widow of one of our founding > members who also should probably be considering selling - although she is > not really thinking about it.� We do not know any of her relatives > (nephew?) who would likely be the heir to her stock.� Her age is > currently 81 I believe. > � > I know the "ongoing" value for a company is generally 1.5 times annual > revenue, but the true value of what a company is worth is what someone is > actually willing to pay for the stock. > � > Per our bylaws, the company has 30 days to make an offer before the > stockholder hits the general market. > � > What advice can you give as to what kind of offer the company should give? > � > The stockholder likely does not know what the "market rate" is and very > likely the market rate is not the same here in the deep south. > � > I am also curious as to what your thoughts may be on how the stockholder > may try to sell his stock on the open market.� I feel sure it would not > consist of a classified ad in the local paper. :) > � > Thanks in advance. > � > � > > >
