BUSINESS VALUATION BASED ON AVERAGE OF LAST 3 YEARS

Hi all,

I would like your thoughts and experiences with a valuation. I'm currently looking at a business that acheieved the following EBITDA:

2018 600k
2019 $1.3MIL
2020 $2.3MIL
2021 $2.3MIL (Dec is forecast)

Would you average 2019, 2020 and 2021 to get the EBITDA or are the last two years consistent enough to use $2.3MIL as the EBITDA?

I am asking myself "how would the banks value this"? Thank you in advance for your help.



share: