Why This Restaurant Supplier Sold at Just 9 Times EBITDA

In episode 152 of The Buyer & Seller Podcast, Lucas and Luna break down why a regional restaurant equipment supplier—think ovens, fryers, and walk-in coolers—sold for just nine times EBITDA despite posting steady revenue and healthy margins. They unpack how the business's heavy reliance on new-build construction contracts capped its multiple, how buyers penalize lumpy revenue, and why a simple shift toward recurring service contracts could have pushed the valuation toward twelve or thirteen times. Along the way, they compare it to the ice machine rental business from episode 137, which fetched six hundred times EBITDA, to show exactly where the market draws the line between product sales and recurring revenue. If you're a founder thinking about an exit, this episode gives you a concrete blueprint for what to fix before you bring in a broker. Plus, Lucas and Luna share how listener support keeps the show ad-free. #RestaurantSupplier #EBITDAMultiple #BusinessValuation #RecurringRevenue #EquipmentSales #BuySellBusiness #ExitPlanning #BrokerAdvice #LumpyRevenue #ContractDependency #ServiceContracts #IceMachineRental #CashFlow #BusinessSale #SMB #FexingoBusiness #BusinessPodcast #MergersAndAcquisitions Keep every episode free: buymeacoffee.com/fexingo