EBITDA: How it Affects Mergers and Acquisitions
If you want to sell your agency or buy an agency then you need to understand what is EBITDA.
Some people mistake EBITDA for an agency’s revenue or cash flow. Sure, revenue is part of it but there is more to your valuation. Let’s unpack this thing and understand its place in mergers and acquisitions.
Earnings Before Interest, Taxes, Depriciation and Amortization is what makes up EBITDA.
When The Signature B&B Companies were acquired by Acrisure there was, as you would imagine in a transaction of that size, quite a bit of due diligence. We started by examining our own financial statement.
If you have questions, like “what happens after you calculate your EBITDA?” feel free to give us a call at 516.764.1100.