Mastering EBITDA Multiples

About the Episode

Kevin Moyer returns to M&A Talk to discuss EBITDA multiples, emphasizing their importance in valuing companies in the middle market. EBITDA multiples measure a company’s enterprise value against its current EBITDA or run rate, either as reported or adjusted, and can vary widely by industry. The discussion covers the role of CapEx, the importance of accurate EBITDA adjustments, the need to ensure that EBITDA multiples are based on recent, relevant transactions, and the significance of net working capital in purchase price calculations.

“You need to feel comfortable with the multiplies you are going to be using as your baseline. The last thing you want to do is miss widely.”

Kevin Moyer

What You’ll Learn

• When and how to use EBITDA multiples: Understand the purpose and application of EBITDA multiples in valuing businesses, especially in the middle market.
• How to determine EBITDA multiples: Recognize the importance of using reliable data sources and industry benchmarks when determining appropriate EBITDA multiples.
• Differences between reported and adjusted EBITDA: A look at the nuances between reported EBITDA and adjusted EBITDA, and the impact these adjustments can have on the valuation.
• When not to use EBITDA multiples: Gain insights into when EBITDA multiples may not be the most appropriate valuation method, such as for early-stage or highly capital-intensive companies.

Topics Covered

Want More? Related Resources: 

• M&A Roundtable
• EBITDA | Definition, Formula & Example – A Complete Guide
• Business Valuation & Return on Investment (ROI)
• Net Working Capital (NWC) for M&A – A Complete Guide

Meet Our Guest

Kevin Moyer

Bennett Thrasher’s Transaction Advisory Services (TAS) | Atlanta, GA

Kevin Moyer is a Director and the Midwest Business Development Leader in Bennett Thrasher’s Transaction Advisory Services (TAS) group, focusing on business development and relationship management. Kevin previously served as a Partner and TAS Practice Leader at SAX LLP, another top 100 public accounting firm. Kevin also has hands-on M&A experience working in corporate development at Paychex and on the investment team at the family office of Simon Group Holdings.

LinkedIn: https://www.linkedin.com/in/kevin-moyer-443397253/