Use the following information to answer questions 132 – 138….
Use the following information to answer questions 132 – 138.Your client, Ashley, owns a prominent cybersecurity business. Earlier in the year she approached you about how companies were valued and how they were sold. She received an unsolicited offer on her company. Though that offer wasn’t necessarily for her, you were able to educate her and move her along the value acceleration path by educating her on the overall process. You have just finished the Triggering Event engagement’s discovery process and you are reviewing some of the preliminary data. This reveals:Annual Revenue $12 millionAnnual EBITDA $1.4 millionAnnual Seller Addbacks $220,000Wealth Goal – $30 millionMultiples range from 3x Recasted EBITDA at the low end to 9x Recasted EBITDA for the best-in-class companiesRecasted EBITDA as a percent to revenue from your sample of similar companies ranges from 10% Recasted EBITDA to Revenue at the low end and 25% Recasted EBITDA to Revenue for the best-in-class companiesAn average attractiveness and readiness score on Ashley’s business of 52%While working with Ashley, you find that she is loved by her employees, customers, and vendors. She truly seems to be the heart and soul of this company. Her advisory team doesn’t really extend past her CPA. Ashley is very tied to personal purpose and seems to have a nice work-life balance and a plan for what would be next if she were to sell her company. Ashley is 42 years old. Her personal plan would include creating a musical institute for children. The original offer she had on the table was from a competitor, who would be considered a synergist buyer who viewed her company as a nice add-on to what they were currently doing.What is the company’s Recasted EBITDA?