It has been a number kicked around at WISPA shows
----- Original Message -----
From: Travis Johnson
To: [email protected]
Sent: Wednesday, April 13, 2016 10:23 AM
Subject: Re: [AFMUG] shareholder value
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.
�
�
