Groh: LinkTrust Valued on Owner-Replacement Cost Savings, Not EBITDA
Brett Groh · 1035 How He Restructured $4.5m Company, Then Exited Jan 1 · May 25, 2018 · at 11:53
Brett Groh, CEO of LinkTrust, explains the valuation methodology used when selling his SaaS company to a private buyer.
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“Well, we're a relatively small company, so we're really valued based upon the amount of money that basically can be saved by me not being there. And I forget what that term is, but basically, you know, you take what my costs are and all the other costs that come into it from there. It's not really just based on EBITDA. We would have to be a little bit larger for that to occur. And so they take that, that amount that the new owner would come into, and then they multiply that.”
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