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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

The core idea behind relative valuation is to estimate a company’s value by comparing it to similar companies based on how the market prices their financial metrics. EV/EBITDA is a widely used multiple in this relative valuation approach. What is EV/EBITDA? Breaking down the multiple What is EBITDA?

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

Scott Mashuda

For CEPAs (Certified Exit Planning Advisors ) working with clients in the lower middle market, understanding this evolving landscape is crucial to providing effective guidance through the Value Acceleration Methodology process. The Role of CEPAs in Value Acceleration Successful exits in the lower middle market require extensive preparation.

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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.

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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.

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How to Sell an IT Business: Everything You Need to Know in Five Minutes

Sun Acquisitions

This is music to the ears of strategic acquirers and private equity firms. If you have proprietary technologies, an especially strong client base or any other differentiating factor, this should be highlighted as you prepare to market your business. Always aim for a diversified client base.

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How to Value an Optometry Clinic Using Industry Multiples

Equilest

Read more insights on business valuation strategies When it comes to buying or selling an optometry clinic, one of the most crucial steps is determining its fair market value. For example, if a clinic earns $200,000 in EBITDA and the industry average multiple is 5x, its estimated value might be $1,000,000.

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

Brian DeChesare

But the real question is this: If you accept an industrials private equity job, will you end up more like Andrew Carnegie or Henry Phipps, or will your career trajectory resemble a distressed tire manufacturing company that later declared bankruptcy? Many markets are still highly fragmented, so this can work quite well.

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