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What is My Business Worth?

  Are you preparing for a business sale? A key question you may ask is “what is my business worth“? The answer, which you probably don’t want to hear is “it depends”! Several factors influence the price of a business. “Environmental” Influences “Environmental” influences impacting  business values are of both an internal and external nature. External environment includes the type of buyer, […]

Author: Jonathan Seddon 02/02/2018 Filed Under: Buy, Sell Tagged With: EBIT Multiples, optimising price, Valuations

Normalised EBITDA to Increase Business Sale Value

Preparing Normalised EBITDA financials is a process undertaken in preparation of a business sale to gain a better understanding of post sale cash flows. This is done by excluding abnormal, non-recurring and one-off events and adding back costs which would be incurred in a “business as usual”. Items to be “normalised” or “adjusted” can often be contentious and a conservative approach […]

Author: Jonathan Seddon 25/09/2017 Filed Under: Buy, Sell, Transactions Tagged With: EBIT Multiples, Normalised EBITDA, optimising price, Valuations

Comparing EBITDA Multiples and PE Ratios

Clients may directly compare the PE ratio (price/earnings ratio) of listed companies to an EBITDA multiple (multiple of earnings before interest tax depreciation and amortisation) of a private company to establish an enterprise value. This is done to understand relative values due to the known market value of a similar listed business. This is often done without understanding that comparing […]

Author: Jonathan Seddon 10/04/2015 Filed Under: Buy, Sell, Strategy Tagged With: Business value, EBIT Multiples, PE Ratios, Valuations

EBITDA Multiples Mislead

EBITDA Multiples mislead  in valuing a business! Although it is a quick and easy way to view and understand the value of a business, caution must be exercised. When determining the value of a company, close consideration should be taken when using either EBIT or EBITDA (earnings before interest and tax, depreciation and amortisation) multiples and the type of […]

Author: Jonathan Seddon 16/01/2015 Filed Under: Buy, Sell, Transactions Tagged With: EBIT Multiples, optimising price, selling a business, Valuations

EBIT Multiples and Growth

EBIT Multiples and growth are an ongoing question for many owners looking to sell or buyers looking to buy a company. What EBIT multiple is applicable to my company, what is my company worth, my company is growing or is about to grow; how is the price affected? If the company has been growing, up to what point in the growth […]

Author: Jonathan Seddon 12/12/2014 Filed Under: Buy, Sell, Strategy Tagged With: Business value, EBIT Multiples, maximum value, selling a business, Valuations

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