Every EBITDA multiple is a hurdle rate in disguise
May 01, 2026
by a professional from University of Wisconsin - Madison in Miami, Florida, United States
Most EBITDA multiples are really hurdle rates in disguise. I just published a bridge equation that converts any EBITDA multiple into the implied rate of return for a given buyer class. Strategic buyers, PE funds, SBA borrowers — they all pay different multiples because they require different returns. The equation makes that explicit.
Full paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=###-###-####
from Massachusetts Institute of Technology in Portland, OR, USA