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:

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