Minimum EBITDA when building a holdco?

by a searcher from Brigham Young University

Jul 01,2022

I want to build a home services holdco in the Phoenix area. What's your recommendation for a minimum EBITDA for a search like this? HBR book min is 750K, but I'm wondering if it would be worth it to search lower as I may be able to consolidate some functions at the holdco level.

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searcher from University of Pennsylvania - The Wharton School

You could probably get one larger co and tuck-in smaller ones with less EBITDA under its functions...

09/05/2022 | like reply | 1 like

professional from University of Southern California - Marshall School of Business

Warren Buffett says, “People who use EBITDA are either trying to con you or they’re conning themselves.” Charlie Munger, Buffett’s right-hand man, goes even further: “I think that, every time you see the word EBITDA, you should substitute the word ‘bullshit’" Strong words from some of the most successful businessmen on the planet.

08/18/2022 | like reply | 2 likes

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