I'm looking at a deal for which depreciation and capex are material each year, and want to exclude them from the valuation calculation. I believe my seller expects to use an EBITDA multiple for his business, and is waving his hand at his annual capex. Have you guys seen structures or discussion patterns that have successfully climbed over this bump? For context, depreciation is nearly half of EBITDA each year.
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At the end of the day, you should have a dollar price that is fair (and accounts for the capex, as well as changes in WC). Whether you "translate" that dollar number into a multiple of EBITDA or EBITDA-Capex or EBIT, shouldn't make a big difference. A business is worth what it's worth in dollars and not multiples
Good luck!