Is my valuation accurate? Please help!

[Adam Philpot]

Evening BP’ers, I’m currently trying to put a fair offer together on a MHP outside Huntsville and hoping those that are in this space can help validate my numbers. Any feedback is much appreciated because I keep losing deals. I’m not sure if my numbers are too tight or everyone else is overspending. Here it goes: 1.) i valued the business at 3x EBITDA (gross revenue - expenses) using their last year tax return. I thought this was reasonable because it hasn’t been ran well and any small business I buy I will give a 3-5x multi on EBITDA. It’s 33 pads but based on the numbers I saw it looked like they’re only collecting on 26 so there is upside if I come in and run it right. The cash flow would be better at full occupancy, but My thought is why should I pay them today for what I have to achieve tomorrow. Value of the business: $103,000 2.) value of assets - I generously priced the land 50k above last years appraisal value. The area is hot right now so I ran it against comparable land for sale in the area. It got me to 10k/acre for 18 acres -$180,000 Infrastructure- roads, water and electrical (MHP established 2006). Last years improved value of the land at appraisal was 50k so I used that number Asset value: $230,000 Overall offer price: $330,000 Please let me know what you think of my numbers. I hate to lose this park because there are nice subdivisions being built only a few miles away.