
What Number Do I Multiply? EBIT, EBITDA, SDE???
Youtube viewer Canucklehead wants to know which n…
David C Barnett Small Business and Deal Making M&A SMB · David C Barnett
February 2, 202216m 44s
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Show Notes
Youtube viewer Canucklehead wants to know which number to multiply and when.
Great question.
One of the biggest problems in business valuation is when people confuse valuation factors.
Apply a 3X EBITDA factor to SDE and you’ll overpay for the business.
But are these hard and fast rules… or just guidelines?
In this week’s video, I discuss when the different cash flow levels made sense and why, in the end, you need to be thinking beyond just math.
Watch this week’s video here: https://youtu.be/Va5USDqv3-A
Learn how to buy an already-successful and profitable business even in the covid-recession https://www.BusinessBuyerAdvantage.com
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