Tom Seely is considering selling his company. He invested 5% of hos own money, 5% from outside investors, and brought in 10% of the purchase price from a bank loan. The bank loan is secured by the company's assets. Seely had to take back a promissory note secured with the stock of the company and subordinated to the bank loan for the remaining 80% of the price. The note from the buyer was for 5 years at 6% interest with 1/3 ballon payments at the end of years 3,4 and 5. The buyer offered approximately 6 times EBTIDA, which equaled the company's book value.

Was the offer fair? How do you know?