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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
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"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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