Valuation

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Two Similar Companies ~ Big Difference in Value

This article was originally published by Business Brokerage Press in March of 2015. Consider two different companies in virtually the same industry. Both companies have an EBITDA of $6 million – but, they have very different valuations. One is valued at five times EBITDA, pricing it at $30 million. The other is valued at seven…

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three factors of earnings
Three Basic Factors of Earnings

This article was originally published by Michael Kawa, ABI on June 14, 2017. Two businesses for sale could report the same numeric value for “earnings” and yet be far from equal. Three factors of earnings are listed below that tell more about the earnings than just the number. 1. Quality of earnings Quality of earnings…

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