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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

EV/EBITDA is a widely used multiple in this relative valuation approach. What is EV/EBITDA? Investors and analysts widely utilize the EV/EBITDA multiple as a key valuation metric. The multiple is calculated as Enterprise Value (EV) divided by EBITDA. Breaking down the multiple What is EBITDA?

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EBITDA Adjustments – 5 Of The Most Common Adjustments In Middle Market M&A

Benchmark Report

Correctly calculating adjusted EBITDA is essential in an M&A transaction, and all parties must be familiar with the adjustments. EBITDA is used to evaluate a company’s profitability of its core operations by removing items dependent on capital structure, such as interest,

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Medical Practice Valuation Multiples

Peak Business Valuation

These metrics are generally based on the medical practices SDE, EBITDA, or revenue. Common Medical Practice Valuation Multiples In the following sections, we discuss the SDE, EBITDA, and revenue multiples. Formula: Value = EBITDA x Multiple Range: EBITDA multiples for a medical practice typically range from 2.61x – 3.61x EBITDA.

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Physical Therapy Multiples

Peak Business Valuation

Common metrics include SDE, EBITDA, and Revenue. For physical therapy valuation multiples, the business appraiser calculates the value of a physical therapy practice by using the practice’s SDE, EBITDA, and REV. Common Physical Therapy Valuation Multiples Below we discuss SDE, EBITDA, and REV multiples for a physical therapy practice.

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ANI Pharmaceuticals, Inc. Completes Acquisition of Alimera Sciences

Benzinga

Stephen Carey, Senior Vice President and Chief Financial Officer of ANI said, "ANI's new capital structure provides us significant financial flexibility to support the integration of Alimera and continue investing in organic growth initiatives while also significantly reducing our interest expense and increasing cash flow." (1)

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Valuation Multiples for an Apparel Wholesaler

Peak Business Valuation

This diagram highlights REV, SDE, and EBITDA multiples. EBITDA Multiples for an Apparel Wholesale Company Average EBITDA Multiple range: 3.09x – 4.51x The average EBITDA multiples for apparel wholesalers range between 3.09x – 4.51x. Apply this multiple to EBITDA to determine an implied value of the business.

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Valuation Multiples for Iron & Steel Manufacturing

Peak Business Valuation

Below we show SDE, EBITDA, and REV valuation multiples for iron & steel manufacturers. Many small businesses such as iron & steel manufacturers transact on cash flow multiples such as EBITDA and SDE. This is because the EBITDA and SDE multiple consider expenses that impact cash flow. 240,000 X 2.87x= $688,800.