EBITDA

Latest EBITDA Articles

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  Sale Process

  Re-Trade and Best Practices to Avoid Them

  (Article originally posted here.)In the M&A world, there are few terms as dreaded as the “Re-Trade”. The continued market uncertainty, coupled with...

  By: Michael Carter

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  Maximize Value

  How Does Working Capital Impact the Value of Your Business?

  How does working capital impact the value of my business? Firstly, an overriding principle of valuation, particularly in valuing operational going concerns businesses,...

  By: Equicapita Income LP

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  Valuation

  Back to Basics: How to Calculate EBITDA

  EBITDA is an oft-used but controversial measure that cut its teeth during the leveraged buyout frenzy of the '80s. EBITDA is ubiquitous in financial circles and is...

  By: Chris Stavrou

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  Maximize Value

  The Top 10 EBITDA Adjustments to Make Before Selling a Business

  Numbers are black and white, right? Not really. When you hire an investment banker to sell your business, they "normalize" the company's numbers to present...

  By: John Carvalho | President, Divestopedia Inc.

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  Maximize Value

  EBITDAC: The Mother of All Add-backs

  Note: This content originally appeared in Carter Morse & Goodrich’s Insights in 60 seconds marketing post, and has been published here with permission.For...

  By: Michael Carter

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  Valuation

  The Value of a Valuation

  Whether looking at acquisitions or divestitures, understanding the factors that drive the valuation of a company is a crucial first step in the process, but one that...

  By: Adam Croft

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  Sale Process

  Pitfalls Around Earnouts (and Why They Rarely Payout)

  An earnout is a financing arrangement for the purchase of a business in which the seller finances a portion of the purchase price, and payment of this amount is...

  By: George Deeb

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  Valuation

  What's Missing in EBITDA?

  I’ve had a lot of conversations lately about EBITDA multiples. Generally, the question I receive is, “What do you think about this multiple? Is it...

  By: Brad Mewes

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  Maximize Value

  EBITDA Engineering Before Selling a Business

  EBITDA is a commonly used metric for the valuation of mid-market businesses. Now, the appropriateness of using EBITDA can be debated, but the fact is that most estimates...

  By: John Carvalho | President, Divestopedia Inc.

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  Valuation

  When an EBITDA Multiple Doesn’t Work for a Valuation

  Owners often say they want to sell for strategic value. But when they’re questioned further, what they really mean is they want to sell for more than an EBITDA...

  By: Dave Kauppi

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  Pre Sale

  The Initial Price May Not Be Real

  The initial dollar figure presented as a purchase price for a business, whether written on a napkin over coffee or floated in a conversation, is not a binding offer. Any...

  By: Paris Aden

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  Maximize Value

  Where Does the Operating Partner in Private Equity Begin?

  What Is an Operating Partner?Initially viewed as a career senior executive with deep experience and a good Rolodex, these executives provide operational credibility and...

  By: John Bova