"We Don't Have Much 'e' in EBITDA" Says Owner of "Treading Water" Co

Many companies in the print and graphic communications industry offer strategic value to an acquirer but they lack earnings to support using the EBITDA valuation method.

While the EBITDA valuation method receives notoriety, owners of "treading water" companies should not assume they can't participate in the industry's long term consolidation trend.

As one client recently said, "We don't have much 'e' in our EBITDA, but we have an awesome customer base and really talented people that our competitors would want on their team."

From our vantage point here at NAPL, most M&A transactions have nothing to do with EBITDA. Don't let the lack of "e" prevent you from considering options for transitioning from ownership!

 

NOTE: NAPL Business Valuations reflect the EBITDA method and also take into account the value of underlying assets such as general intangibles and equipment.