Correctly calculating adjusted EBITDA is essential in an M&A transaction, and all parties must be familiar with the adjustments. EBITDA is used to evaluate a company’s profitability of its core operations by removing items dependent on capital structure, such as interest,
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EBITDA Adjustments – 5 Of The Most Common Adjustments In Middle Market M&A
Posted on July 21, 2023 By
Benchmark International in
Benchmark International +
finance +
accounting +
EBITDA +
Mergers and Acquisitions +
M&A Transactions +
2023 +
EBITDA Multiples +
middle market business +
income sources +
EBITDA adjustments
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 +
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EBITDA Multiples
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.