EBITDA is not cash. Three fatal errors in the valuation of private companies. If you are an entrepreneur and you negotiate the sale of your company only on the formula “EBITDA × multiple”, you risk losing money. A lot. I want to tell you why.
Saturday morning. Cafe in Floreasca, 9:30. In front of me is an entrepreneur, 57 years old, 18 years of work in a company that he is going to sell to an investment fund (PE). On the table, a teaser: “Our of…
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EBITDA is not cash. Three fatal errors in the valuation of private companies. If you are an entrepreneur and you negotiate the sale of your company only on the formula “EBITDA × multiple”, you risk losing money. A lot. I want to tell you why.
Saturday morning. Cafe in Floreasca, 9:30. In front of me is an entrepreneur, 57 years old, 18 years of work in a company that he is going to sell to an investment fund (PE). On the table, a teaser: “Our of…