Wednesday, February 2, 2022

What number do I multiply when pricing a business? EBIT, EBITDA, SDE, Net-Income???

 

Youtube viewer Canucklehead wants to know which number to multiply and when.

Great question.

One of the biggest problems in business valuation is when people confuse valuation factors.

Apply a 3X EBITDA factor to SDE and you’ll overpay for the business.

But are these hard and fast rules… or just guidelines?

In this week’s video, I discuss when the different cash flow levels made sense and why, in the end, you need to be thinking beyond just math.

Watch this week’s video here: https://youtu.be/Va5USDqv3-A

Learn how to buy an already-successful and profitable business even in the covid-recession  https://www.BusinessBuyerAdvantage.com   

Book a call with me at https://www.clarity.fm/davidbarnett  

Books can be found in my Amazon store: https://www.amazon.com/shop/davidbarnett

Stop missing my new videos. Join my email list here: https://www.DavidCBarnettList.com   

Want to look dangerous like David? Jeff Alpaugh Customs has a special offer for you: https://www.JeffAlpaugh.com/DCB10 


No comments:

Post a Comment