Panel of Bankers Reels Off What Catalog Company Buyers Want

1. The strength and relationship the company has with its customers. “If relationships endure over multiple repeat purchases,” Berg said, “you can afford to pay for a lot of growth, because that growth will come with a lot of value.”

2. Size of sales.

3. Growth potential.

4. Margins. “EBITDA [earnings before interest, taxes, depreciation and amortization] growth drives multiples,” Rose pointed out. “If you have a brand and relationship that works, you should get those EBITDA margins. But in the absence of that customer relationship, you can’t.”