If you are considering selling your business, you undoubtedly need to understand its value. Unfortunately, arriving at that answer can entail many different methodologies, and it often involves the familiar valuation formula of applying a multiple of Earnings Before Interest, Tax, Depreciation, and Amortization (EBTIDA).
For example, if a company boasts EBITDA of $1 million, and a five times EBITDA multiple is applied, the company’s estimated value is $5 million. But how do we know what multiple applies to your business? And how do we know if the EBITDA number is even accurate? After all, EBITDA will not be the same for every business.
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Applying EBITDA Multiples To Your Company Valuation
Posted on May 23, 2022 By
Benchmark International in
Benchmark International +
middle-market +
EBITDA +
Mergers and Acquisitions +
multiples +
Exit planning +
exit strategy +
growth strategy +
#SellerMandATips +
#TransitionABusiness +
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Sellersmarket +
Recurring Revenue +
Company Valuation +
EBITDA Multiples
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