Business Types

Wall Street Businesses
These are large publicly traded companies that earn millions after tax. Their P/E Ratios and terms of sale are all cash or equivilent. Management is professional with many layers.

Middle Market Businesses
Substantially privately held companies with $250k to small millions. Their P/E's are usually 3-15 times earnings. Sale is usually cash or same structure as Upper Main Street companies.

Upper Main Street Businesses
Larger than Main Street businesses earning between $100k to $250k annually. Their P/E ratios are 3-7 times earnings and require a down payment of 1-2 times earnings + sellers notes, and sometimes uses 3rd party financing. Owner is typically the primary element in company operations.

Main Street Businesses
Classified as small "Mom & Pop" companies earning in the area of $100k expressed as discretionary earnings. P/E's are 1 to 4 time DE. Terms of sale typically require a down payment of 50-100% of DE in addition to a sellers' note for the balance and the owner acts as primary management.

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