You would think it's like 120mil. Did they devalue the worth just to fit into the show to get a loan?
shareMost of these guys are probably too dumb in real life to think of buying these firms. Also, they may not want anything to do with it. Don't want to be politically incorrect, but it takes a lot of business acumen and schooling to run these things properly without getting eaten alive.
shareI am not an expert on firm value...so you may be right, but
They have mentioned that this is just a boutique firm (in comparison to Garcia's) and they have a small client base for now.
ROUGH CALCULATION:
$500mm AUM (assets under management) asset management firm - back of the envelope is as follows:
LTM revenue multiple of 2.8x - 3.0x
LTM EBITDA multiple of 9.0x - 10.0x.
TEV / AUM = 1.5% - 3.5%
So ballpark maybe around 2.5% * $500 AUM = $12.5mm TEV (Total enterprise value), without looking at any other figures.
So in other words, the show is implying Spencer has brought in players who have pledged a total of $500mm to be managed by ASM. (Or arguably that everyone thinks Spencer WILL bring in that much total AUM in the near future, since valuation is a forward looking measure.)
Given the salaries mentioned of Suh, Ricky, Vernon, etc, I roughly assume that could mean signing 25 players at an average of $20million invested each.