Martin Holland

Joined January 24, 2023

Articles 12

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Incremental Improvements

As a business owner, you juggle multiple tasks: managing a team, handling clients, bringing in new leads and making sure projects run smoothly. Among these, one critical responsibility is often neglected: ensuring profitability. We think about, worry about and hope for profit but often don’t do anything to actually improve net profit.
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EBITDA and the Multiple

In my last article, I defined EBITDA as net profit adjusted to make it more useful for business valuation. To estimate a company’s value, valuers multiply EBITDA by a number called the “multiple.” The result is the estimated value of the company. For example, a company with an annual EBITDA of $500,000 and a multiple of 2 has a value of $1 million.
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EBITDA

There are conventional practices for valuing a business that informed buyers and sellers generally follow. One of those is valuing a business as a multiple of its net annual profit expressed in a form called EBITDA.
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Breakeven

Breakeven is too important to ignore. There are many uses for breakeven. It is a fundamentally important tool with the power to transform your thinking and the quality of your business decisions.
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