EDITDA VS EBIT FOR VALUATION PURPOSES
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.