business broker|business for sale|ebitda|florida business broker|multiple of earnings|Pricing a Business|Selling a business|Valuing a Business

Pricing a Business – the role of EBITDA

When engaged in pricing a business for sale we are concerned with two important numbers. EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization). This figure represents the real cash flow of the business. We also will obtain a factor to multiply the EBITDA by in order to estimate the correct price range. This factor is call a “Multiple of Earnings”...