Benchmark Report

SEPTEMBER 14, 2022

In the world of small to mid-market mergers and acquisitions, a number that is very important is a company’s adjusted EBITDA. The adjusted EBITDA is meant to find a company’s true normalized earnings by taking away any outside influences or ownership influences on the company’s bottom line.

EBITDA 52

EBITDA Normalized Earnings Marketability 52

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.

Business Valuation 52

Business Valuation Normalized Earnings EBITDA Appraisal 52

Viking Mergers

MARCH 24, 2022

SDE is variously referred to as Seller’s Discretionary Cash Flow, Adjusted Cash Flow, Owner Benefit, Recast Earnings, or Normalized Earnings, although Seller’s Discretionary Earnings is the official terminology advocated by the International Business Broker’s Association (IBBA). SDE vs EBITDA.

EBITDA 130

EBITDA Business Valuation Normalized Earnings Marketability 130

Class VI Partner

NOVEMBER 14, 2022

Average EBITDA multiples have consequently dropped in comparison to last year’s frenzied M&A period. Many private equity groups have pointed to their challenges in determining what they consider to be true normalized earnings, given the unique business elements of the last couple of years, both positive and negative.

Equity 52

Equity Normalized Earnings Finance EBITDA 52

Class VI Partner

JULY 28, 2021

EBITDA EBITDA refers to Earnings Before deducting Interest, Taxes, Depreciation, and Amortization costs, and is often used by buyers and sellers as a proxy for operating cash flow in a business (i.e., EBITDA Multiple EBITDA Multiple refers to the multiple of EBITDA used to determine a company’s enterprise value.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52