Buy Then Build by Walker Deibel
Book: HBR Guide to Buying a Small Business – Richard Ruback and Royce Yudkoff
X = your liquid capital
PP = Purchase Price
SDE = Seller Discretionary Earnings
M = Multiplier
- PP = X / 0.1
- PP = SDE x M
- PP / M = SDE
Rule number one for establishing a purchase price is making sure the business can afford to pay for the business.
Determine how transferrable the business is.
Initiate with “Tell me about your business.”
What makes this company different?
Why do people buy from you?