Tune in to the Sell Side podcast for a comprehensive exploration of the business selling journey. Join host Michael Stanley from Keel Point as he engages with business owners, attorneys, wealth advisors, and other experts, offering you an immersive, panoramic perspective on the transaction process.
Tune in to the Sell Side podcast for a comprehensive exploration of the business selling journey. Join host Michael Stanley from Keel Point as he engages with business owners, attorneys, wealth advisors, and other experts, offering you an immersive, panoramic perspective on the transaction process.
In this episode of Sell Side Stories, we break down one of the most fundamental concepts in business valuation: how EBITDA and multiples work together to determine a company’s true enterprise value. We explore why EBITDA—earnings before interest, taxes, depreciation, and amortization—is used to normalize profitability and reveal a business’s real free cash flow.
From there, we dive into valuation multiples, unpacking how risk, industry dynamics, market trends, and strategic fit all influence where multiples land. We also discuss common EBITDA adjustments, including pro forma add-backs and one-time expenses, that can shape the final valuation picture.
Whether you're preparing to sell, exploring acquisition opportunities, or simply wanting to understand how buyers assess value, this episode offers a clear, practical breakdown of the mechanics behind business valuation.