Case Study of “Business Auction Sale”

Overview

Business Auction Sale resulted in higher price and Seller choice of Buyers.

In 2022, we executed an Auction Business Sale for a 20+ Year Repair Service (AAA*) with an

EBITDA of $1,500,000* from Revenues of $11,000,000*. The result:

The Sellers were able to interview multiple Buyers and selected the Buyers who they believe will

be the best caretakers of their employees and legacy.

Time on Market – 27 Days

This is number of days from Seller approval of the marketing materials and marketing strategy to

Seller acceptance of Letter of Intent or equivalent from the successful Buyer. AAA was on the

market for 27 days.

Number of Offers – 3 with more pending

The business received two Letters of Intent, and two email offers:

The Sellers found a buyer and offer they liked and decided to close the offer process leaving

disappointed Buyers who were hoping to make a serious bid.

Sale Price

Industry Comps indicated valuations in the 3x EBITDA ($4,500,000) to 5x EBITDA

($7,500,000) range for similar business in this industry.

AAA was sold for 6.83x EBITDA or $10,245,000. Significantly more than the industry comps.

This additional Sale Price justifies use of the Auction Business Sale even after payment of

Broker Commissions.

Broker Comments

AAA is an excellent A+ business with General Manager on staff. Owners were are-absentee. All

Buyers were institutional, professional buyers with adequate cash available to acquire the

business. Estimated time to Close after Letter of Intent is 60-90 days. Not every business will

qualify for a Business Auction. Contact us to find out more about Business Auctions.

*The Business Name, Revenues and EBITDA were slightly changed to protect confidentiality of

the Seller.

Please contact us for more information about the Business Auction Sale.