| |
Wall Street |
Middle Market |
Upper Main Street |
Main Street |
| Overview |
Large Publicly Traded Companies |
Substantial Privately Held Companies |
Larger Than Main Street, Mature Companies |
Small Companies, "Moms & Pops" |
| Earnings |
Measured in Millions, After Tax |
$250K to small millions |
Greater Than $100K, less than $250K |
In The Area of $100K - Expressed as Discretionary Earnings |
| P/E Ratios |
Cash or Equivalent |
3 to 15 Times Earnings |
3 to 7 Times Earnings |
1 to 4 Times DE |
| Terms of Sale |
Cash or Equivalent |
Cash or Same Structure as Upper Main Street Companies |
Down Payment of 1-2 Times Earnings + Sellers Note, Sometimes 3rd Party Financing |
Down Payment of 50% - 100% of DE Plus a Sellers Note For The Balance |
| Management |
Professional With Many Layers |
Structured & Disciplined, Owner Involvement Varied |
Owner is Primary Element in Company Operations |
Owner Wears Most of the Hats |
