How Profitability Thresholds Drive Greater Exit Value

When planning for the sale of a business or business unit, size matters.

Revenue matters, but from the prospective of business buyers, the size of a company’s EBITDA is particularly important. Both strategic and financial buyers alike view EBITDA (earnings before interest, taxes, depreciation, and amortization) as a key yardstick for where the business sits relative to others within a particular industry.

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