multiple of earnings

July 7, 2014

Multiple of Earnings – Business Valuation Method

In an earlier post I dealt with EBITDA a formula for determining the earnings of a business. Once we have determined the EBITDA or true cash flow of a business the next step to determining its value is to apply […]
July 6, 2014

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 […]