Notes for Owners
Questions owners ask before they call anyone.
We are a buyer, so read these accordingly. We have tried to write the version we would want if we were on your side of the table, including the parts that argue against us.
Almost everything written on this is written for owners in default. The four paths that apply to a healthy borrower, and the difference between a buyer who pays off your loan and one who assumes it.
The multiple is the easy part. Owner compensation, add-backs that do not survive diligence, and a worked example where the same business is worth $14.4M or $9.3M depending on whose conventions you use.
When a competitive process is worth its cost, when it is not, and the five things to do if you skip one. Written by a buyer who benefits when you skip it.
BDE Capital acquires lower middle market companies in healthcare services, B2B services, and trade schools, and holds them long term. If you have a question that is not answered here, write to us directly.
team@bdecap.com