Acquisition Multiples

by a searcher

4 years ago

What is the classic valuation technique in search funds?  I am thinking EBITDA multiples.  I have heard multiples as low as 2-3x EBITDA.  Is this accurate???

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16 comments

lender from University of Utah

Happy to discuss from a bank perspective. --@----.com or###-###-####

2 months ago | like reply | 0 likes

professional from University of New Haven - College of Business

Cash flow - properly identifed is more important than EBIDTA multiples. Deals completed are typically reproted as EBITDA x's - look at the undelying cash to support the business, its investments and cap structure relative to industry and specific company details before using any EBITDA mantra.

3 months ago | like reply | 0 likes

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