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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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“The Confidential Auction really works. John Nelson and NBS presented several qualified buyers that matched our criteria. Leveraging multiple buyers to compete against each other enhanced our selling price and terms.”
-Seller Confidentiality Protected
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