Innovative Food Holdings Inc (IVFH)

[CPTMatt]

Look, why would the owners sell their business w/ an earnout that requires hitting FY 2018 EBITDA of $3.8M if the business didn't have positive operating income to begin with? The earnout #'s have to be achievable or the sellers would have to be idiots without any professional representation. I doubt the latter. To me this indicates the biz probably has a pretty good op income number but their NI was probably impaired by their debt service payments.

Even if they paid $3M it would be a good deal for a business they believe can hit >$3M EBITDA for 2018. That means they paid <1x EBITDA for the business which is unbelievable.