Adjusted EBITDA or EBITDA? – Part 3 of 3

Now that you can calculate EBITDA correctly it is time to drill down into the difference between Adjusted EBITDA and EBITDA.  Before we review this important distinction, I think it is important to explain the reason for using another benchmark for valuation. If you classify businesses as small, medium or large, breaking them up into [...]

By | 2017-12-18T23:06:07-07:00 December 18th, 2017|Business Valuation Expert Tips and Information|1 Comment

Adjusted EBITDA or EBITDA? – Part 2 of 3

Now that we have a good baseline Earnings number we need to look at Interest, Taxes, Depreciation, and Amortization. Interest Expense. The interest you can add back is all interest from debts and credit cards and consumer debts. It also can include finance charges. What interest does not include is bank fees, charges, or merchant [...]

By | 2017-12-15T15:34:44-07:00 December 15th, 2017|Business Valuation Expert Tips and Information|0 Comments

Working Capital: An Important Consideration When Selling A Business

Working Capital is defined simply as Current Assets Less Current Liabilities. Some advisors will include a certain amount of average inventory in Working Capital as well. Some advisors do not include Inventory in the Working Capital. Because of this it is important to define Working Capital as it pertains to each individual deal. Inventory can [...]

By | 2017-12-11T18:44:22-07:00 December 11th, 2017|Uncategorized|0 Comments