EBITDA Multiples by Industry: What They Mean
Why do EBITDA multiples vary by industry? A plain-English guide to what drives sector ranges and what decides where your business lands within one.
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Guides to business valuation, growth, and exit
How buyers value private companies, what moves a valuation range, and what an eventual transaction involves.
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How Software and SaaS Businesses Are Valued
Net revenue retention, gross margin, and the rule of 40 set the band for software businesses, and below a certain scale buyers may value on revenue.
How Healthcare Services Businesses Are Valued
Payer mix, reimbursement risk, and single-site versus platform scale shape a healthcare business's multiple more than almost anything else.
What Is Seller's Discretionary Earnings (SDE)?
SDE is roughly EBITDA plus one working owner's full compensation. What it measures, exactly how it is calculated, and why only one owner counts.
How Manufacturing Businesses Are Valued
Working capital, customer diversification, and equipment condition do more to set a manufacturer's multiple than the headline revenue figure.
Business Valuation Ranges: Common Questions
How accurate is a business valuation range, how wide should it be, and what does it include? Practical answers to the questions owners ask most.
EBITDA Add-Backs Buyers Accept and Reject
Which EBITDA add-backs will a buyer actually credit? The adjustments that survive diligence, the ones that get struck, and how to document the difference.
What Is EBITDA? A Plain-English Definition
EBITDA is earnings before interest, taxes, depreciation, and amortization. Here is what it measures, why buyers use it, and where it misleads.
How Buyers Value a Privately Held Business
How do buyers actually value a private company? A plain-English walk through the EBITDA-and-multiples method buyers use, and what moves your range.
Why a Buyer's Offer Is Rarely a Single Number
Why does a valuation come back as a range, not one number? Because the range carries information a point estimate throws away. Here is what it tells you.
What Buyers Look For in $3–5M Businesses
Earnings quality, customer concentration, and owner dependence decide where a $3–5M business lands. What buyers examine, and what you can realistically move.
EBITDA vs. SDE: Which Applies to Your Business
EBITDA or SDE? Which earnings metric a buyer uses depends on your scale and how involved you are, and the choice changes your headline number.