Business buyers do not often reveal their hands about why they feel a business is an attractive acquisition prospect for fear of driving up the price. They do, however, reveal those features that detract from a business' value in order to try to drive down the price during negotiations. This article discusses the value drivers and value detractors in a business sale transaction.
EBITDA between $2mm and $7mm
Operating margins greater than 15%
Experienced second tier management team willing to remain with the company
Large and fragmented market
Recurring revenue business model
History of profitability and cash flow
Medium to low technology