EBITDA

How to Value your Business

How to Value your Business

After getting ready for a business exit, the first thing that has to be done is to value the business. This is when the fun starts as there is no straight forward calculation that can determine the value of your business. The most important thing to remember is that the…

EBITDA – it’s importance in your Business

EBITDA – it’s importance in your Business

EBITDA is the figure commonly used to measure a company’s value and how well it performs against other businesses. EBITDA stand for earnings before interest, tax, depreciation and amortisation and isn’t usually shown separately in formal financial statements. Usually its earnings before interest but after depreciation that’s shown in the…

Investors’ Jargon explained

Investors’ Jargon explained

  Once you start meeting with investors’, you will find that they and their financial advisers start talking in jargon about your business in terms that may as well be in Klingon. EBITDA, IRR, NPV, leverage, terminal value, net cashflow, free cashflow, blah…blah…blah… Here’s a short explanation of investors’ jargon…