When you first see a higher than average SDE or EBITDA the business can be alluring.
April 15, 2025
by a professional from The University of Texas at Austin - Red McCombs School of Business in Austin, TX, USA
But remember that number is only part of the story. Keep asking questions to understand the financials and the risks?
Some of the questions to ask:
- Is there customer concentration?
- Are margins high because the owner does most of the work?
- Are the customers sticky?
- Is the industry growing?
- Will the clients leave with the owner?
- Are the numbers even true?
from The University of Texas at Austin in Austin, TX, USA