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

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

GCF Value

JANUARY 20, 2025

Key Factors in Transportation and Warehousing Valuation Financial Performance Cash flow is one of the main drivers of business value, making the accurate calculation of normalized earnings essential to achieving maximum value. There is some overlap before EBITDA becomes the predominant figure for focus.

Business Valuation 52

Business Valuation Asset-based Approach Appraisal Discounted Cash Flow 52

Equilest

JANUARY 25, 2025

EBITDA Multiples: A widely accepted method is applying a multiple (commonly 3x to 5x) to the EBITDA figure. Discounted Cash Flow (DCF): This method involves projecting future earnings and discounting them to present value. Capitalization Rate: This is applied to normalized earnings to provide a snapshot of the business's value.

Intangible Assets 40

Intangible Assets Discounted Cash Flow Normalized Earnings EBITDA 40

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 Terminal Value 52

Valutico

DECEMBER 16, 2024

Enhanced Normalization Adjustments for Earnings What? Weve introduced a new adjustments feature within ValuPlan Plus, enabling users to account for extraordinary items that may distort historical earnings. EV/Sales, EV/EBITDA) and financial metrics (e.g., Sales, EBITDA, Net Income).

Normalized Earnings 52

Normalized Earnings EBITDA Equity Marketability 52

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