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Mergers, Acquisitions & Investment Banking for Mid-Market Business Owners
EBIT & EBITDA Multiples
EBIT = Earnings Before Income Tax

EBITDA = Earnings Before Interest, Taxes, Depreciation & Amortization

EBIT, EBITDA, & Recast EBITDA (see Recast EBITDA Defined) are frequently used to determine listing/selling price for a business. The greater the annual revenues, the higher the multiple, illustrated in the following table. The source of this information is Thompson Financial Data, an industry financial database resource. This information is based on historical transaction closings, does not include real estate & is not industry specific.

                      WHAT IS YOUR BUSINESS MULTIPLE?

Revenues in Millions of Dollars
EBIT Multiple
EBITDA Multiple
Less than $25M
8.1x
5.0x
$25 to $100M
12.3x
9.8x
$100M to $250M
12.5x
10.0x
$250M to $500M
13.3x
10.6x

"John Nelson's business and intangible Valuation in conjunction with his expert witness testimony was crucial to the bankruptcy court approving the sale of my client’s company. Without his thoughtful Valuation and testimony the sale certainly would not have been approved."
 
-Edwin G. Rice
Attorney, with Glenn, Rassmussen, Fogarty & Hooker, P.A. and legal counsel to the Assignee of the Bankruptcy Court 
 
 
 
 

   

 

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