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I am the principal and founder of Gear Up Finance, a Tulsa, Oklahoma based Acquisitions and Corporate Finance advisory firm. I have been servicing a number of clients during the past 3 years and I am starting this blog in anticipation of my pending website launch. Stay tuned for links to the site and more detailed information about Gear Up Finance.

I am an independent financial advisor and my clients are as varied as the projects that I have performed for them. Of all my services offered, my specialty has been performing comprehensive due diligence and acquisition advisory services to clients seeking to buy (non-start-up) private companies with less than $50 million in annual revenue. During this time a recent trend has become clear; buyers of small private companies do not want to pay more than 5 times EBITDA (Earnings before interest, taxes, depreciation & amortization) for even the best run and performing businesses. I have seen acquisition enterprise valuation multiples range from 2 - 3x EBITDA for lesser quality companies and if EBITDA is negative, prepare for a haircut. There are exceptions to be sure, particularly when the target company has extraordinary growth potential, but since buyers can currently buy shares of excellent public companies with enterprise valuations around 5.5x EBITDA, it's a buyers market. (Private companies can be valued at a 30% discount to their public peers, all things equal, due to the lack of liquidity)

Owners of private companies who want to cash out should consider other liquidity alternatives such as recapitalization rather than selling their company. In today's tight credit markets you need to make sure you are properly prepared to engage several lenders. We can help. Gear Up Finance can help your company develop a professional financial management process and then prepare and circulate a bank book and presentation that will have lenders competing to extend your company credit. Give us a call for a free consultation - (918) 231-4571.