Sublime

The most recent year had an SDE of $350,000, the year prior had $310,000, and the year before that was $275,000. You calculate a weighted average of $335,000 over the last three years and multiply it by three to get $1,005,000.

Second, the prospect was an established business roughly in the size range that Randy was interested in; a purchase at 4x 2011 EBITDA would be $4.0 million, an amount he believed he could finance with a combination of bank debt, seller debt, and investors’ equity.

With angel syndicates, you simply pay the carry. There are no fees other than some minor legal and filing fees (typically less than $10,000 per deal, spread out across the dozens of investors in a deal).