Hi. From what I was told for our kind of business, you use a 3-5x multiplier on your annual net earnings, or EBITDA.
Closer to 5 or even 6x if you have many years on your lease or somehow have some other premium (location, strong community, etc.)
WW is like infinityX btw, like 1000x future P/E ratio.
You could engage a lawyer, but honestly, most lawyers rarely given you biz advice. A biz dev person, or broker…or YOURSELF would package up a deal. The lawyer would draft up a PSA, purchase sellers agreement, based on YOUR direction.
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WEST: Santa Monica | 1450 2nd St (@Broadway)
CENTRAL: Mid-Wilshire | 5405 Wilshire Blvd (2 blocks west of La Brea)
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On May 30, 2017, at 10:49 AM, David Hamilton [email protected] wrote:
Does anyone have experience buying or selling an existing space? I’m sure this is something we’ll all run into at some point.
Hypothetically - say someone got an offer out of the blue to buy your business outright and you’re considering it - what’s your first course of action? Do you get a professional assessment? Do you get a lawyer to package your company for sale and write up a contract? Is it worth going through a listing agent to find other potential buyers?
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