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Name:
#3115 Online Job Listing Service
Categories:
Technology / Internet
Region:
Midwestern city
Industries:
Technology
Segments:
Service
Asking Price:
$375,000  
Down Payment:
TBS  
Revenue:
$603,000  
Adj. Profit:
$188,000  
Adj. Profit Type:
EBITDA  

This company, located in a larger, Midwestern city, is a leading provider of community-based, Internet-based recruiting solutions.   With an active subscriber base of about half a million, the Company sells job listing services to employers and promotes job openings to job seekers via a national network of websites and services.  Annual contracts have a high renewal rate, averaging about 85% and payments are made in advance.  Job information is provided free to job seekers; the Company does derive additional revenue from advertising and offering third party services to job seekers.  Contact Lynn Lage. BUSINESS SUMMARY

Notes of Explanation:
  1. TBS = "To Be Suggested"
  2. Seller's Adjusted Profit

The Seller's Adjusted Profit is a calculation showing the cash flow generated by the Business for the most recent tax year, unless otherwise indicated, by adding back to the net profit those costs that are discretionary to the Seller. These costs could include the owner's salary and benefits, interest paid on the seller's notes/debts that are not assumed by the buyer, non-cash expenses such as depreciation (in appropriate situations) and amortization, and certain non-recurring or unusual expenses. Details of the Adjusted Profit calculations are available in each presentation package and in our files.

"An Economic Basket"

Another way of viewing the Seller's Adjusted Profit is as the historic economic basket of benefits available to the new owner so he can:

  1. Pay himself an appropriate wage commensurate with the skill required to manage the business.
  2. Service any debt incurred to purchase the business.
  3. Receive a reasonable rate of return on the down payment invested. (The appropriate rate of return depends on market conditions and the size of the business. For smaller transactions the rate of return on investment is not usually a significant factor in the valuation.