How to Value A Business With More Than One Million Dollars in Earnings

In order to value the business we need to know the, Earnings Before Interest, Taxes, Depreciation, and Amortization, also referred to as EBITDA, essentially, it’s the pure net profit of a business.. EBITDA is a line on a business’ income statement. EBITDA attempts to take certain variables such as accounting and tax strategy, as well as whether a business is financed with debt or equity, out of the equation. This is intended to compare your business to another similar business like yours.