IT Valuations

APRIL 7, 2025

The discussion highlighted the key factors impacting IT business valuations , including: Revenue Growth & Profitability: Sustainable, predictable growth with strong EBITDA margins commands higher valuations. Whats Driving Valuations?

EBITDA 52

EBITDA Business Valuation Finance Equity 52

Value Scope

DECEMBER 1, 2023

billion of annual revenue and $560 million of EBITDA. The ValueSport blog is a look at the hybrid world of sports and business. Formula One Group, founded in 1950, was purchased for $4.4 billion in 2016 by Liberty Media. It operates as subsidiary of Liberty under the Nasdaq ticker FWON.K. The subsidiary reports $2.8

Start-ups 130

Start-ups EBITDA Business Valuation Market Capitalization 130

GCF Value

JANUARY 20, 2025

For valuation purposes, private company transactions typically use two cash flow streams: Sellers Discretionary Earnings (SDE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). A good rule of thumb is to use SDE for earnings up to $500,000 and EBITDA for everything at $500,000 and above.

Business Valuation 52

Business Valuation Asset-based Approach Appraisal Discounted Cash Flow 52

Sun Acquisitions

NOVEMBER 17, 2023

In this blog post, we will dive into different market value methods and strategies used in M&A, shedding light on the secrets to successful M&A transactions. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Multiples: EBITDA multiples are a standard valuation method for businesses with consistent cash flows.

EBITDA 59

EBITDA Discounted Cash Flow Intangible Assets Comparable Company Analysis 59

Lighter Capital

MARCH 28, 2024

Sammy Abdullah, Managing Partner and Co-Founder at Blossom Street, posted a wonderfully detailed analysis of Q4 SaaS revenue multiples on their blog recently, which you should definitely check out if you want to go deeper into the data. Only 27 of the 62 companies with negative EBITDA margin also had negative cash flow.

EBITDA 52

EBITDA Technology Marketability 52

RNC

JULY 13, 2023

In this blog, we will delve into seven essential concepts and terminologies related to business valuation. This approach utilizes valuation multiples, such as price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, or enterprise value-to-EBITDA (EV/EBITDA) ratio, to estimate the value of the business.

Business Valuation 52

Business Valuation Intangible Assets Fair Market Value EBITDA 52

GCF Value

MARCH 1, 2022

An audit is balance sheet focused, whereas the QoE is concentrated on the income statement, emphasizing a company’s true ongoing earnings and cash flow potential, often measured as EBITDA. At this stage, a company’s pro forma EBITDA can then be compared consistently to the projections of future EBITDA generated by the company.

EBITDA 52

EBITDA Equity Compliance 52

ThomsonReuters

DECEMBER 19, 2020

ATI was defined as EBITDA, that is, net taxable income after adding back interest expense, taxes, depreciation, and amortization. The post How the CARES Act Affects the 163(j) Business Interest Expense Deduction appeared first on Tax & Accounting Blog Posts by Thomson Reuters.

EBITDA 105

EBITDA Banking Finance 105

RNC

JULY 2, 2024

This blog aims to unravel the concept of what is business valuation in Shark Tank and its significance for startups seeking investment. One of the key elements of these pitches is business valuation —the process of determining the financial value of a startup. But why does valuation matter, and how does it impact startups seeking investment?

Business Valuation 52

Business Valuation Dividends Discounted Cash Flow Price to Earnings 52

RNC

JUNE 20, 2024

In this blog, we explore key methods for the valuation of shares to understand a company’s genuine worth. It aids in identifying opportunities and managing risks effectively in the stock market. It also impacts decisions regarding fundraising, mergers and acquisitions, employee stock options, and overall financial health.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Comparable Company Analysis Price to Earnings 52

IT Valuations

NOVEMBER 26, 2024

EBITDA and Multiples While not always included, LOIs often acknowledge a price based on EBITDA or revenue multiples. He advised aligning operations under a single entity to streamline the sale process and reevaluating tax minimization strategies that may inadvertently reduce EBITDA and valuation.

EBITDA 52

EBITDA Equity Marketability 52

FE International

MARCH 23, 2022

If you want to understand how to value a business, the first question is whether to look at a multiple of SDE , EBITDA or Revenue. SDE vs. EBITDA vs. Revenue. A new benchmark of earnings before interest, taxes, depreciation and amortization ( EBITDA ) is employed. For most businesses, the valuation benchmark debate stops there.

EBITDA 105

EBITDA Start-ups Business Valuation Marketability 105

Benzinga

JANUARY 17, 2023

Today, Contentellect helps small-and medium-sized businesses scale their content with blog writing, link building, and more. Contentellect reported $330,000 of adjusted EBITDA in 2021 (on an unaudited basis). Contentellect was launched in 2018 and began as a specialist content writing service for software-as-a-service companies.

EBITDA 40

EBITDA Marketability 40

Benzinga

OCTOBER 17, 2022

Launched in 2014, Proofread Anywhere provides extensive online resources in the form of courses, workshops, and blog posts for readers looking to train and become professional proofreaders. million of adjusted EBITDA in 2021 (on an unaudited basis). "We The transaction closed the following day, October 14, 2022.

EBITDA 40

EBITDA Marketability 40

RNC

JULY 24, 2024

In this blog, we delve into the challenges of turnover-based company valuation and discuss strategies for overcoming them. Understanding Turnover-Based Company Valuation Turnover-based company valuation , or revenue-based valuation, applies a multiple to annual revenue to determine a company’s worth.

Discounted Cash Flow 52

Discounted Cash Flow Start-ups Intangible Assets Business Valuation 52

Midstreet Blog

AUGUST 4, 2022

If you’re planning to sell a business doing more than $1M in EBITDA , then you may have considered selling to a private equity group. You may have even been approached by a private equity group looking to purchase your company as one of its “platforms.” If that term doesn't resonate with you, don’t worry.

Equity 40

Equity EBITDA 40

Midstreet Blog

AUGUST 2, 2022

If you’re in the process of selling a business that does more than $1 million in EBITDA , then you may have heard the term “Quality of Earnings (QoE)” floating around, especially as you approach due diligence. You may be wondering what a QoE consists of, what it means for the value of your business , and how it differs from an audit.

EBITDA 40

EBITDA 40

Equilest

SEPTEMBER 2, 2022

This blog post will discuss Seller's Discretionary Earnings and how it can help us evaluate companies. It is defined as Adjusted EBITDA + Owner Compensation (one full-time owner). What is Seller's Discretionary Earnings, and How Does it Affect Valuation? Equitest's business valuation team explains. . Let's dive right into it. . .

Business Valuation 40

Business Valuation EBITDA Technology Marketability 40

Musings on Markets

JULY 27, 2022

And no, you cannot add back stock based compensation and come up with an adjusted EBITDA to claim otherwise.) For this value to be generated, the company will need to stop paying lip service to contribution margins and adjusted EBITDA, and work on reducing growth in its cost of goods sold. An Action Plan So, what now?

Risk Premium 98

Risk Premium Start-ups Equity Marketability 98

Peak Business Valuation

DECEMBER 30, 2022

A valuation expert uses multiples when determining the value of a counseling center. SDE Multiple Average Range: 1.94x – 3.14x. EBITDA Multiple Average Range: 3.37x – 5.40x . Revenue Multiple Average Range: 0.40x – 0.69x. Often cash flow multiples – SDE and EBITDA multiples are most applicable.

Business Valuation 52

Business Valuation Fair Market Value Appraisal EBITDA 52

Peak Business Valuation

MARCH 13, 2023

EBITDA Multiple Average Range: 2.99x – 3.93x SDE Multiple Average Range: 2.60x – 3.26x Revenue Multiple Average Range: 0.39x – 0.90x **Disclaimer: These multiples are for educational purposes only. Often cash flow multiples – SDE and EBITDA multiples are most applicable.

Business Valuation 52

Business Valuation Fair Market Value Appraisal EBITDA 52

Musings on Markets

AUGUST 19, 2024

In fact, the business life cycle has become an integral part of the corporate finance, valuation and investing classes that I teach, and in many of the posts that I have written on this blog. In 2022, I decided that I had hit critical mass, in terms of corporate life cycle content, and that the material could be organized as a book.

Corporate Finance 122

Corporate Finance Finance Start-ups Dividends 122

RNC

OCTOBER 23, 2024

This blog will explore the most common methods used for share valuation, especially in the context of mergers, acquisitions, and investment decisions. By looking at key financial metrics like price-to-earnings or enterprise value-to- EBITDA , you can gauge the company’s relative valuation. Compare valuation ratios (e.g.,

Precedent Transaction Analysis 40

Precedent Transaction Analysis Weighted Average Cost of Capital Price to Earnings Comparable Company Analysis 40

Equilest

MARCH 17, 2022

In practice, professionals rely on several results, assessed at different levels of the income statement: - the gross operating surplus (EBIT or EBITDA) - net operating surplus (ENE or EBIT) - the Current Result Before Tax (RCAI) - Net Income (NR) - Self-Financing Capacity (CAF) or operating cash flow. EBITDA and EBIT). EBE and ENE.

Business Valuation 40

Business Valuation EBIT Discounted Cash Flow EBITDA 40

GCF Value

JUNE 20, 2024

Currently, cash flow margins average 19% of revenue for SDE (Seller’s Discretionary Earnings) and 14% for EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This trend is not expected to reverse soon, impacting cash flow margins.

Business Valuation 52

Business Valuation Appraisal EBITDA Marketability 52

Internal Audit 360

DECEMBER 8, 2022

GUEST BLOG. What significant risks could dramatically affect EBITDA forecasts over the coming 1,3,5 years? Editor’s Note: The views expressed by the author do not necessarily reflect the views of Internal Audit 360 ° , as we seek to bring varied and provocative ideas to our readers. How concentrated are the investment projects?

EBITDA 52

EBITDA Market Risk Marketability 52

ThomsonReuters

MARCH 9, 2023

Second, the limitation on business net interest deduction is reduced to 30% of earnings before interest and taxes (EBIT) instead of earnings before interest, taxes, depreciation, and amortization (EBITDA). The post Navigate tax season with these resources for accountants appeared first on Tax & Accounting Blog Posts by Thomson Reuters.

EBIT 59

EBIT EBITDA Technology Compliance 59

GCF Value

JUNE 5, 2024

x SDE (Seller’s Discretionary Cash Flow) or 5 x EBITDA, the value may be too high. So regardless of how well a subject company performs compared to the industry, the added value will eventually cap out. If your valuation exceeds 3.5

Business Valuation 52

Business Valuation Appraisal Technology Price to Earnings 52

GCF Value

AUGUST 15, 2023

Example 1: Income Approach Let’s say we’re engaged to value a liquor store WITHOUT inventory. Can we do this, yes…But the total value needs to be adjusted for a working capital deficit.

Business Valuation 52

Business Valuation Appraisal Price to Earnings Start-ups 52

FE International

DECEMBER 31, 2021

That is, were the companies in those transactions valued as a multiple of EBIT , EBITDA , revenue, or some other parameter? In a public company setting this tends to manifest as P/E multiples as well as EV/EBITDA and EV/Sales or other iterations of these core metrics. Earnings-Multiple. Valuation Multiples In Practice.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Business Valuation Precedent Transaction Analysis Start-ups 52

FE International

APRIL 20, 2022

multiple of SDE or EBITDA. A buyer who can point to having scaled a portfolio of similar companies in the past will instill more confidence in their ability to get the seller paid on those parts of the structure. Depending on a measure of a variety of valuation drivers, an e-commerce business should fall between 3.5x

Private Equity Firm 98

Private Equity Firm Equity Start-ups Business Valuation 98

Musings on Markets

JANUARY 26, 2023

I don't own a Tesla, and have only driven someone else's Tesla, but as readers of this blog know, I valued Tesla for the first time in 2014, and I keep returning to the scene of the crime. I drive a 2010 Honda Civic, a perfectly serviceable vehicle that is never going to get oohs and ahas from onlookers, but I feel no urge to value Honda.

Start-ups 99

Start-ups Marketability Risk Premium Equity 99

Chris Mercer

FEBRUARY 14, 2024

RSDs are not value drivers like EBITDA, gross profit, number of cases, or any other value drivers. If you disagree with this rather strong statement, feel free to comment on this blog with your rationale for such relevance. Feel free to comment, either on the blog post directly or on LinkedIn when the post is published there.

Marketability 52

Marketability Dividends Appraisal Business Valuation 52

FE International

MARCH 14, 2018

WordPress has evolved into a lucrative marketplace since the content management system (CMS) no longer focuses solely on blogging. Typically, the benchmark of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is applied. Ensure that you’re basing your content decisions on well-researched keywords.

Marketability 52

Marketability Start-ups EBITDA Business Valuation 52

Erik A. Lopez

SEPTEMBER 23, 2015

In this post on The M&A Lawyer Blog, I will: introduce the concept of Material Adverse Effect and explain its principal functions, present pro-buyer and pro-seller versions of MAE definitions and explain how, and why, they differ, including with respect to forward-looking language and common qualifications, and.

Net Debt 52

Net Debt EBIT Marketability Specific Risk 52

FE International

APRIL 13, 2022

Many metrics come into play when determining a SaaS business’ worth, and at FE International we consider the following, and more, listed below: SDE vs. EBITDA. The extensive capital invested in this space shows that a SaaS business is incredibly valuable and attractive to many potential buyers. vs. Revenue. Age of Business. Business Stage.

Private Equity Firm 52

Private Equity Firm Equity B2C Start-ups 52

FE International

JANUARY 3, 2021

EBITDA Method of Valuation. With EBITDA, any compensation paid to an owner is considered a legitimate operating expense and is not added back. EBITDA is used to gauge the performance of a business in terms of profitability before certain uncontrollable or non-operational expenses. Revenue and Growth-Based Valuations. Operations.

EBITDA 59

EBITDA Start-ups Finance eCommerce 59