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Private Practice ENT Buy-in. $25 million discounted valuation for non-voting shares.

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  • #46
    Originally posted by AR View Post
    Agree with above. Multiples of ebitda is generally how it is done.
    Multiples of EBIDA is typical valuation negotiating for control of an ongoing business. The problem is the multiple Sorry, 2x to 6x is not really a formula.

    A buyer needs to consider the return on the investment. The missing piece is what asset is being bought but more importantly the EXIT. Is it zero or what?
    In any partnership terms of entry and exit need to be clearly defined. As a non voting shareholder I would take a hard pass. Putting money in for the privilege to take more money out is not a good deal under any valuation method. What happens when the voting partners sell out? It doesn’t have to be this way.
    Last edited by Tim; 02-04-2022, 06:36 AM.

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    • #47
      I have not read all the responses. How much of this valuation amount is due to your own production? Are you really being asked to buy your own sweat equity?

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      • #48
        Originally posted by Eyemd356 View Post
        The question isn’t whether they are getting screwed, the question is if they have enough courage to walk away
        its difficult to leave the good enough income and happy enough practice even when you know you aren’t being treated fairly
        I agree and can relate to this. If you're making "enough" and happy "enough" do you really want to leave the "good enough" practice and struggle for a couple years on your own without a guarantee that you will be better off starting your own practice?

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