
The Art and Science of Valuing a Middle-Market Business
M&A Talk: #1 Podcast on Selling a Business
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Is EBITDA the Most Popular Measure of Cash Flow?
EBITDA is used because it takes out the non-cash items such as depreciation and amortization of a company. Free cash flow in essence, if you will, is taking a firm's earnings and then adjusting them by adding back that depreciation andAmortization expense. That's considered to be on income versus relates to kind of an economics earning exercise.
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