There’s a reason why EBITDA multiples are so popular, and that is its simplicity + accuracy. Talking about advantages, these multiples are beneficial for both evaluators and buyers because:
- For business valuators, the normalized ratio for comparing similar entities creates a standardized and widely acceptable methodology.
- For buyers and investors, it offers clear data on a company’s financial performance by discounting the cost of taxes, debts, etc. And this, in turn, puts sellers like you in an advantageous position for a quick and favorable sale deal.