EPISODE · Feb 2, 2022 · 16 MIN
What Number Do I Multiply? EBIT, EBITDA, SDE???
from David C Barnett Small Business and Deal Making M&A SMB · host David C Barnett
Youtube viewer Canucklehead wants to know which number to multiply and when. Great question. One of the biggest problems in business valuation is when people confuse valuation factors. Apply a 3X EBITDA factor to SDE and you’ll overpay for the business. But are these hard and fast rules… or just guidelines? In this week’s video, I discuss when the different cash flow levels made sense and why, in the end, you need to be thinking beyond just math. Watch this week’s video here: https://youtu.be/Va5USDqv3-A Learn how to buy an already-successful and profitable business even in the covid-recession https://www.BusinessBuyerAdvantage.com Book a call with me at https://www.clarity.fm/davidbarnett Books can be found in my Amazon store: https://www.amazon.com/shop/davidbarnett Stop missing my new videos. Join my email list here: https://www.DavidCBarnettList.com Want to look dangerous like David? Jeff Alpaugh Customs has a special offer for you: https://www.JeffAlpaugh.com/DCB10
What this episode covers
Youtube viewer Canucklehead wants to know which number to multiply and when. Great question. One of the biggest problems in business valuation is when people confuse valuation factors. Apply a 3X EBITDA factor to SDE and you’ll overpay for the business. But are these hard and fast rules… or just guidelines? In this week’s video, I discuss when the different cash flow levels made sense and why, in the end, you need to be thinking beyond just math. Watch this week’s video here: https://youtu.be/Va5USDqv3-A Learn how to buy an already-successful and profitable business even in the covid-recession https://www.BusinessBuyerAdvantage.com Book a call with me at https://www.clarity.fm/davidbarnett Books can be found in my Amazon store: https://www.amazon.com/shop/davidbarnett Stop missing my new videos. Join my email list here: https://www.DavidCBarnettList.com Want to look dangerous like David? Jeff Alpaugh Customs has a special offer for you: https://www.JeffAlpaugh.com/DCB10
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What Number Do I Multiply? EBIT, EBITDA, SDE???
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