We were approached by a major fire brand company (name not disclosed for confidentiality reasons) who sold their products to distributers across Australia. The company was profitable with stable historical earnings but had forecast a significant increase in the coming financial year.
The challenge was to position the company in a way where we could base the transaction price on a multiple of forecast earnings rather than historical.
We achieved a great outcome for the entrepreneur! The multiple paid for the business was well above where the acquirer begun.