Valuation 101: the EBITDA Multiple

Last month we took a high-level look at different approaches to valuing a company. We noted that, because of their ability to reflect the future economic benefits of an ongoing business, cash flow methodologies are most commonly used in business valuation. These include applying a multiple to an income or cash flow number, capitalizing cash […]

Beware the EBITDA Multiple Trap

Services and Transactions

In today’s M&A environment, an EBITDA multiple is by far the most common methodology employed to value a privately owned business.