How EBITDA Margins Affect Revenue Multiples
Auto Dealer Valuation Insights
MARCH 13, 2024
Whenever someone asks me what their RIA is worth as a multiple of revenue, I respond by asking about their firm’s EBITDA margin. The revenue multiple can be decomposed like this: Thinking back to your pre-algebra days, the EBITDAs on the right side of the equation cancel, such that the revenue… Source
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