Increase Adjusted EBITDA with Strategic One-time Costs
Increase Adjusted EBITDA with Strategic One-time Costs Quick Answer Adjusted EBITDA typically increases 50 to 60 percent above reported EBITDA through legitimate addbacks, primarily owner salary normalization, depreciation, and one-time costs, according to S&P Global analysis of 600 deals. Each validated dollar of adjusted EBITDA directly multiplies enterprise value, so at a 10x multiple, one […]
Normalized EBITDA: What It Is and Why Buyers Care
Normalized EBITDA: What It Is and Why Buyers Care Quick Answer Normalized EBITDA is trailing twelve months (TTM) EBITDA adjusted for non-recurring, non-cash, and owner-discretionary items so the number reflects the cash a new owner could reasonably expect under arms-length, third-party management. Buyers care because purchase price is calculated directly off this figure: normalized EBITDA […]
Tree Care Business Valuation: Free Tree Care Valuation Calculator. What’s Your Tree Care Business Worth in 2026?
Tree care valuation in 2026: typical 3-5x EBITDA range, equipment value treatment, recurring revenue weight, and the 8 factors that separate top-of-range from middle-tier.
Adjusted EBITDA: What Add-Backs Buyers Actually Accept
Adjusted EBITDA: What Add-Backs Buyers Actually Accept Quick Answer Adjusted EBITDA adds back legitimate, recurring expenses to EBITDA that don’t reflect ongoing business operations, such as owner perks, one-time costs, excess compensation, and discretionary spending. Buyers accept add-backs only when they’re documented, non-recurring, and clearly separated from core operating expenses, as professional buyers want a […]
How to Calculate Seller Discretionary Earnings Correctly
How to Calculate Seller Discretionary Earnings Correctly Quick Answer SDE calculation starts with net income and adds back nine line items: one owner’s W-2 compensation, owner benefits, interest, taxes, depreciation, amortization, one-time costs, documented personal expenses, and above-market family payroll. The formula is SDE = Net Income + Owner Comp + Owner Benefits + Interest […]
Revenue Multiples vs EBITDA Multiples in 2026: Which Buyers Actually Use, With a Worked HVAC Example
When buyers use revenue multiples vs EBITDA multiples (and which gets you a better price). Industry-by-industry breakdown — and why most LMM buyers default to EBITDA.
SDE vs EBITDA: The Key Metric That Drives Your Sale Price
SDE vs EBITDA: The Key Metric That Drives Your Sale Price Quick Answer Seller discretionary earnings is used to value small founder-led businesses and includes owner salary plus net profit, reflecting true cash available to a new owner, while EBITDA is the standard metric for mid to large companies and excludes owner compensation. Choosing the […]
How Customer Concentration Kills Your Business Valuation
How Customer Concentration Kills Your Business Valuation Quick Answer A single large customer typically triggers at least a 30 percent valuation discount from buyers, who assess post-acquisition cash flow stability rather than historical sales alone. Customer concentration ratios measure the percentage of revenue from your largest accounts, and high ratios signal risk during M&A due […]
Restoration Business Valuation: Free Restoration Valuation Calculator. What’s Your Restoration Business Worth in 2026?
Restoration Business Valuation: Free Restoration Valuation Calculator. What’s Your Restoration Business Worth in 2026? What Is a Restoration Business Worth in 2026? Quick Answer Restoration businesses using insurance-driven models typically value at 4x to 6x SDE with stable carrier relationships and predictable claim flow, while retail-focused restoration commands 5.5x to 7.5x SDE due to higher […]