Same EBITDA, Different Price: What Actually Sets Your Multiple

Why two companies with the same $2 million of EBITDA can sell millions apart, and the five things buyers actually price. Two companies each earn about $2 million of EBITDA. One sells for $8 million. The other sells for $14 million. Same earnings. A $6 million difference in value. Why? In this episode of Weeks Weekly, Ed Weeks Jr. breaks down what actually determines the multiple a buyer is willing to pay, using current M&A market data and lessons from real business transactions. You'll learn: The five factors buyers evaluate: recurring revenue, management depth, EBITDA add-backs, customer concentration, and financial quality. Why business size and buyer type influence valuation multiples. How owner dependency can reduce what buyers are willing to pay. Why the headline purchase price and the cash you receive at closing can be very different. What business owners can do now to improve value, even if they aren't planning to sell. The two-company comparison is illustrative, but the underlying valuation principles have real financial consequences. 00:00 Intro 00:19 Two $2 Million Companies: $8 Million vs. $14 Million 01:15 What the Market Is Paying 02:39 Five Questions Every Buyer Asks 05:03 What Makes a Business Worth More 05:41 Headline Price vs. Cash at Closing 06:41 What Business Owners Should Do Now 07:44 Outro Read the full article: https://edweeksjr.com/same-ebitda-different-price/ Research and sources: TagniFi PowerComps Q2 2026: https://peprofessional.com/2026/08/private-equity-buyers-pay-up-for-small-add-ons-as-middle-market-multiples-climb-to-6-9x/ GF Data Q2 2026: https://www.linkedin.com/posts/gfdata_acg-privateequity-pe-activity-7506424956235333632-1Q8H PitchBook, Construction & Engineering: https://pitchbook.com/news/articles/ai-data-center-boom-private-equity-deals-electrical-hvac SRS Acquiom Deal Terms Study: https://www.srsacquiom.com/our-insights/deal-terms-study/ SRS Acquiom Earnout Trends: https://www.srsacquiom.com/our-insights/ma-earnout-milestone-trends/ IBBA and M&A Source Market Pulse: https://www.prnewswire.com/news-releases/the-market-pulse-survey-q2-2026-reports-the-latest-trends-in-business-sales-up-to-50m-302858664.html About the host Ed Weeks Jr. is the founder of Weeks Consulting Group, advising business owners, buyers, and capital partners on valuation, acquisitions, exits, and strategic decisions. https://edweeksjr.com General education only. Not legal, tax, or investment advice.