Brian DeChesare

MARCH 8, 2023

If you want to work in the most cyclical role in the finance industry, it’s hard to beat commodity hedge funds. The fundamentals do not relate to EBITDA , Free Cash Flow , or valuation multiples but to factors like the weather, human behavior, geopolitics, and supply and demand. appeared first on Mergers & Inquisitions.

Finance 119

Finance Start-ups Banking Alpha 119

Value Scope

SEPTEMBER 4, 2020

Debt Usage Decline In Q2 2020, total debt to EBITDA fell to 3.3x decline in total debt to EBITDA was attributed to a decline in senior debt to EBITDA, pushing the percentage of subordinate debt to total debt to 15.2%, up 2.4% Despite the simple average enterprise value (EV) to EBITDA multiple remaining at 7.4x

Equity 130

Equity EBITDA Marketability Enterprise Value 130

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

Lighter Capital

AUGUST 31, 2023

A company’s profitability can be analyzed using multiple financial metrics, including EBITDA margin. Tracking EBITDA margin over time and comparing it to both industry averages and similar competitors helps assess the health of a business and determine future strategies. What is EBITDA? Why is EBITDA important?

EBITDA 52

EBITDA Start-ups Finance Equity 52

Value Scope

SEPTEMBER 4, 2020

In Q2 2020, total debt to EBITDA fell to 3.3x decline in total debt to EBITDA was attributed to a decline in senior debt to EBITDA, pushing the percentage of subordinate debt to total debt to 15.2%, up 2.4% Despite the simple average enterprise value (EV) to EBITDA multiple remaining at 7.4x Debt Usage Decline.

Equity 130

Equity EBITDA Marketability Enterprise Value 130

BV Specialists

OCTOBER 9, 2023

EBITDA : Earnings Before Interest, Taxes, Depreciation, and Amortization Even the long version of this acronym is confusing to understand. Here is a short discussion of its meaning and purpose: EBITDA is a measurement to determine a company's profitability or cash flow, however, it may not fully represent cash earnings.

Appraisal 98

Appraisal EBITDA Business Valuation Banking 98

Benchmark Report

JULY 21, 2023

Correctly calculating adjusted EBITDA is essential in an M&A transaction, and all parties must be familiar with the adjustments. EBITDA is used to evaluate a company’s profitability of its core operations by removing items dependent on capital structure, such as interest,

EBITDA 52

EBITDA Capital Structure Marketability Finance 52

Midstreet Blog

DECEMBER 13, 2022

With so many finance terms and acronyms floating around, it can be difficult to keep track of what they all mean. Perhaps even more difficult is keeping track of which ones actually apply to you.

EBITDA 52

EBITDA Finance Business Valuation 52

Accountancy Today

DECEMBER 16, 2021

Furthemore, adjusted underlying EBITDA was £11.1m, up 14% compared with the same period last year (£9.7m). The corporate finance market is highly active as capital continues to be deployed. Geoff Rowley, CEO, said: “The markets we operate in have been mixed.

Corporate Finance 96

Corporate Finance EBITDA Finance Marketability 96

Benzinga

APRIL 3, 2025

("BIP") (NYSE: BIP , TSX: BIP ) and its institutional partners (collectively, "Brookfield Infrastructure") reached a definitive agreement to acquire 100% of the world-class midstream asset portfolio Colonial Enterprises ("Colonial"), which includes the Colonial Pipeline, for an enterprise value of approximately $9 billion or 9x EBITDA.

Debt Financing 45

Debt Financing Enterprise Value EBITDA Equity 45

Viking Mergers

MARCH 25, 2022

Most values are determined by weighted averages of EBITDA, Cash Flow, or Revenue. When due diligence and buyer financing arrangements are complete, it is time to draft the closing documents and complete the sale. Have a professional conduct a business valuation so you know what the range of value should be for your company.

Business Valuation 245

Business Valuation Marketability EBITDA Finance 245

Brian DeChesare

MAY 4, 2022

The key problems are: Very High Purchase Multiple: The historical (FY 21) EBITDA multiple here is 52x , and the FY 22 multiple based on consensus estimates is 28x. Twitter – Financing/Loan Document for LBO (PDF). Its ARPU is around $41, it has billions of users, and it has EBITDA margins of 40-45%. Total wipeout.

EBITDA 111

EBITDA Start-ups Finance Equity 111

Global Finance

OCTOBER 7, 2024

Snaitech generated $285 million of adjusted EBITDA in 2023 and NSX is expected to report $34 million of adjusted EBITDA for 2024, according to New York-based investment bank Needham & Company. The post Sports Betting: FanDuel Parent Wields M&A To Expand appeared first on Global Finance Magazine.

EBITDA 75

EBITDA Finance Banking Technology 75

Peak Business Valuation

OCTOBER 31, 2024

Common valuation multiples for used car dealerships are SDE multiples, EBITDA multiples, and REV multiples. Some key value drivers for a used car dealership include: Low Owner Reliability Loyal Client Base Financing Offerings Market Adaptability Understanding these value drivers and how they apply to your business will help you succeed.

Business Valuation 52

Business Valuation Fair Market Value Appraisal Marketability 52

Peak Business Valuation

NOVEMBER 16, 2024

Typical valuation multiples for a tire dealership include SDE multiples , EBITDA multiples, and REV multiples. Securing Financing for Buying a Tire Dealership Next, buying a business is rarely cheap, and frequently outside financing is required to get started. Learn more by reading How to Value a Tire Dealership.

Business Valuation 52

Business Valuation Fair Market Value Appraisal Finance 52

Scott Mashuda

NOVEMBER 13, 2023

In a low-interest-rate environment, borrowing is more affordable, and companies often leverage debt as an attractive source of financing to fund growth initiatives, acquisitions, or capital expenditures. Valuation in the private markets is often defined by a business’ EBITDA. What is EBITDA?

EBITDA 89

EBITDA Equity Marketability Debt Financing 89

Benzinga

JANUARY 2, 2024

The transaction will be financed through a new $350 million credit facility. Signature has projected 2023 revenue, operating income, and Adjusted EBITDA of approximately $122 million, $24 million and $44 million, respectively. Myers Industries, Inc (NYSE: MYE ) and Signature Systems are planning a $350-million merger.

EBITDA 64

EBITDA Finance 64

Benzinga

DECEMBER 4, 2024

Addition of 4x 2015/2016-built, immediately cash-generative post-panamax vessels, purchased from non-conventional seller at a 30+% discount to open-market charter-free values, consistent with strict investment criteria and strategy of fleet renewal and selective growth 10-year financing committed at SOFR + 2.50% ATHENS, Greece, Dec.

Finance 40

Finance EBITDA Marketability 40

Benzinga

DECEMBER 6, 2022

From a financial perspective, they need to be generating solid EBITDA today, which is what we use to derive our purchase price. As a rule, we buy actual, tangible EBITDA the company generated over the last few months; we don’t buy hope, speculative projections or turnaround stories. Full story available on Benzinga.com.

EBITDA 97

EBITDA Marketability Finance 97

Benzinga

JUNE 20, 2024

This acquisition represents about 14 times the estimated 2024 EBITDA on a tax-adjusted basis. The buyout is expected to boost adjusted earnings per share in the first full year of ownership and is not subject to financing conditions. billion in an all-cash transaction.

EBITDA 59

EBITDA Finance Equity 59

Auto Dealer Valuation Insights

AUGUST 26, 2022

We’re sometimes surprised when we hear about buyers paying 20x EBITDA for RIAs with under $1 billion in assets under management, so you can imagine our reaction to MassMutual Ventures, Bessemer Venture Partners, and Khosla Ventures paying an implied valuation at 20% of AUM and 20x revenue for Farther Finance Advisors, a start-up, tech-heavy RIA (..)

Start-ups 59

Start-ups EBITDA Finance 59

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

Benzinga

AUGUST 14, 2024

times its last twelve months adjusted EBITDA as of June 29, 2024. Mars plans to finance the acquisition with a mix of cash reserves and new debt, with commitments already secured. The transaction price of $83.50 The deal values Kellanova at 16.4

EBITDA 59

EBITDA Finance Equity 59

Reynolds Holding

JUNE 3, 2024

As EBITDA and revenue multiples on larger platform acquisitions increased through 2021 and into the early part of 2022, many sponsors turned to consolidation and “buy and build” strategies, characterized by using smaller add-on acquisitions with lower price multiples to build value.

Equity 45

Equity EBITDA Debt Financing Equity Financing 45

Lighter Capital

AUGUST 10, 2023

Use EBITDA from your P&L as a proxy for net burn, and pull your current cash from your balance sheet: Runway = Current cash balance ÷ EBITDA 2. Pay close attention to the term length and payment terms if you’re considering debt financing.

Start-ups 93

Start-ups Finance EBITDA Debt Financing 93

Brian DeChesare

JULY 31, 2024

But this shifted over time as EBITDA growth became more appealing in sectors such as TMT , and its importance also spilled over into industrials. trailing EBITDA multiple and a 5.2x forward multiple (the forward multiple was higher due to a projected decline in sales and EBITDA ). Let’s do some “ quick IRR math ” to illustrate.

Equity 66

Equity Private Equity Firm EBITDA Start-ups 66

Andrew Stolz

APRIL 3, 2020

Leveraged Buyout (“LBO”) is a quite common term in Corporate Finance field. It refers to acquiring a company (or its part) and financing it with debt. Financing spin-offs – when a company decides to sell a part of the company and the deal is financed by debt; Private deals – when e. LBO Analysis and its Steps.

Private Equity Firm 52

Private Equity Firm EBITDA Equity Finance 52

Trout CPA

JANUARY 10, 2023

This is not meant to disparage the finance function; after all, many owners have trained their management teams to communicate and explain the financial results through the lens of net income. EBITDA or free-cash-flow is a much better bottom-line data point than net income, but we’ll save that discussion for another day).

EBITDA 52

EBITDA Finance Marketability 52

Peak Business Valuation

AUGUST 23, 2024

Whether buying, selling, or financing a physical therapy practice you need to understand these financial metrics. Common metrics include SDE, EBITDA, and Revenue. For physical therapy valuation multiples, the business appraiser calculates the value of a physical therapy practice by using the practice’s SDE, EBITDA, and REV.

EBITDA 52

EBITDA Business Valuation Appraisal Capital Structure 52

Sun Acquisitions

NOVEMBER 17, 2023

Deal Financing: Valuation guides the selection of the proper financing structure for the deal, including how much capital is required and where it should be sourced. The target’s EBITDA is multiplied by a particular factor, typically derived from comparable transactions.

EBITDA 59

EBITDA Discounted Cash Flow Intangible Assets Comparable Company Analysis 59

Valutico

DECEMBER 6, 2022

At the current level Salesforce has a P/E ratio of 100x and an EV/EBITDA ratio of 47x for 2022. This was mainly driven by operating expenses growth exceeding sales growth and thus putting strain on EBITDA margin. Salesforce’s five-year share price chart is shown below: Source: Yahoo Finance, [link]. Valutico Analysis.

Discounted Cash Flow 52

Discounted Cash Flow EBITDA EBIT Market Capitalization 52

Valutico

DECEMBER 6, 2022

At the current level Salesforce has a P/E ratio of 100x and an EV/EBITDA ratio of 47x for 2022. This was mainly driven by operating expenses growth exceeding sales growth and thus putting strain on EBITDA margin. Salesforce’s five-year share price chart is shown below: Source: Yahoo Finance, [link]. Valutico Analysis.

Discounted Cash Flow 52

Discounted Cash Flow EBITDA EBIT Market Capitalization 52

Musings on Markets

JANUARY 5, 2024

I have also developed a practice in the last decade of spending much of January exploring what the data tells us, and does not tell us, about the investing, financing and dividend choices that companies made during the most recent year. Financing Flows 5. EBIT & EBITDA multiple s 5. Aggregate operating numbers 3.

Dividends 105

Dividends Risk Premium Equity Book Value 105

Benzinga

OCTOBER 1, 2024

a modern finance and spend management software solution that combines bill pay / accounts payable automation, expense management, corporate cards and procurement capabilities. SCHAUMBURG, Ill., Paylocity will update financial guidance in the normal course of business in their first quarter fiscal 2025 earnings release.

Finance 49

Finance EBITDA Marketability 49

Benzinga

MARCH 25, 2024

The purchase price represents an Enterprise Value 1 /EBITDA 2 multiple of approximately 6.6 Non-GAAP Financial Measures This press release also includes certain non-GAAP financial measures, including EBITDA and Enterprise Value to EBITDA. These are Atlantica's first operating assets in the U.K.,

EBITDA 49

EBITDA Enterprise Value Finance Equity 49

Benzinga

MARCH 31, 2022

The Company has an aggressive growth strategy to actively acquire cannabis retail stores that will provide meaningful revenue growth and positive adjusted EBITDA.". The Uncle Sam's Cannabis retail cannabis stores have demonstrated significant revenue, EBITDA, and earnings growth over 2020 and 2021.

Finance 40

Finance EBITDA Marketability 40

Brian DeChesare

JANUARY 19, 2022

FSG Investment Banking: What the Financial Sponsors Group Does The Financial Sponsors Group vs. the Financial Institutions Group The Financial Sponsors Group vs. Leveraged Finance vs. Debt Capital Markets Recruiting: Who Gets Into the Financial Sponsors Group? The Financial Sponsors Group vs. Leveraged Finance vs. Debt Capital Markets.

Private Equity Firm 94

Private Equity Firm Banking Equity Finance 94