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We expected that the 2017 Tax Act would spur increased multiples for buyouts. At the same time, we did not expect some of the pricing we have heard of or experienced. One recent example was $11 million in revenue and a $5 million EBITDA. The written LOI was for a 15 multiple or $75 million. Obviously, the buyer was a strategic. Yet the near-term growth would have to be astronomical to even remotely justify that offer.

Normalcy is taking a leave of absence or vacation. For the above seller, especially with revenue below $20 million, a multiple of 5 to 6 would have been solid.

What to do in the current "Wonderland"? if buyers are so hungry for a deal, we will use that leverage to our advantage, and that of our sellers. So long as the "bubble" lasts we are definitely in a sellers' market.