Remove EBITDA Remove Equity Remove Private Equity Firm
article thumbnail

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?

EBITDA 52
article thumbnail

Acquisition Criteria: What Every Private Equity Firm is Looking For

Value Scout

Private equity firms provide meaningful investment capital to growth-oriented businesses. Unlike venture capital firms, they do not invest primarily in start-ups. Businesses seeking expansion, change of investors, or even exit may benefit from private equity firms.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

How to Start a Private Equity Firm – and Why You Probably Shouldn’t

Brian DeChesare

If you search for “how to start a private equity firm” online, you’ll find results that range from useless to tangentially useful to occasional nuggets of real wisdom. Starting a private equity firm is a bad decision for ~95% of people who work in the finance industry. How Does It Work?

article thumbnail

Private Equity Value Creation: Equally Viable Alternative to PE Deal Teams?

Brian DeChesare

Private equity value creation came on my radar a few years ago when I noticed something: Even though traditional PE deal roles were not doing well, “operational” or “value creation” teams still seemed to be recruiting. What Does the Private Equity Value Creation Team Do in Real Life?

Equity 105
article thumbnail

Industrials Private Equity: The Best Place for Old-School Deals at Reasonable Multiples?

Brian DeChesare

If you ever tire of the hype around tech, industrials private equity might be an ideal hiding spot. Morgan’s acquisition of Carnegie Steel in 1901 – was an industrials private equity deal. Table Of Contents Industrials Private Equity Defined What Has Drawn Private Equity Firms to Industrials Companies?

Equity 66
article thumbnail

Understanding the Lower Middle Market M&A Landscape: What CEPAs Need to Know

Scott Mashuda

The lower middle market typically encompasses businesses with $2-10 million in EBITDA or enterprise values between $10-100 million. REAG s target market includes the United States and businesses between $2M and $25M in EBITDA and up to $250M in revenue. A key distinction in this space is the buyer profile.

article thumbnail

How to Value an Optometry Clinic Using Industry Multiples

Equilest

Unlike public companies that are valued based on stock prices, private healthcare businesseslike optometry practicesare typically valued using multiples of financial performance metrics such as EBITDA, SDE, or revenue. What Are Valuation Multiples? SDE Multiple (Sellers Discretionary Earnings) Typical Range : 2x to 3.5x

EBITDA 40