Chris Mercer
NOVEMBER 15, 2022
Assume a company has reported an EBITDA of $2.0 Assume further that the appropriate EBITDA multiple is 6x and that the underlying equity discount rate is 14%. Then, based on reported EBITDA, the company is worth $12.0 Normalized EBITDA is, therefore, $3.0 million based on normalized EBITDA.
Class VI Partner
NOVEMBER 14, 2022
Average EBITDA multiples have consequently dropped in comparison to last year’s frenzied M&A period. Large strategic buyers with strong balance sheets and well-funded private equity groups have gained favor. Many buyers have also had to take on a higher proportion of equity to fund deals.
Class VI Partner
JULY 28, 2021
Balance Sheet A Balance Sheet is an accounting record for a company that lists a company’s assets, liabilities, and shareholders’ equity. In particular, a Buy-Sell Agreement will typically provide for what happens in the event that one of the shareholders leaves the business and he or she needs to dispose of an equity stake in the business.
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