EBITDA

What, Why and How's of EBITDA

Middle market businesses are typically priced on how much the company makes - it's earnings.  The exact metric for earnings is EBITDA. Earnings Before Interest, Taxes, Depreciation and Amortization. 

This module will cover:

1. Why use EBITDA and not actual cash flow - which would theoretically be better?
2. Why exclude all those items from EBITDA?
3. Where the rule-of-thumb multiples-of-EBITDA come from for valuing businesses
4. Adjusting EBITDA for management / owner wages and benefits
5. Adjusting EBITDA for occupancy costs
6. Which time periods are used to measure EBITDA?
7. Compilation, Reviews and Audits

The first few modules are designed to prepare you to assist in a valuation of your business. This module covers the basics of EBITDA and why we even use EBITDA.