Smart Lawyers Position to Transition cover image

Smart Lawyers Position to Transition

Business Valuation: EBITDA vs. SDE

Sep 12, 2024
12:22

In this episode, host Victoria Collier goes into the world of business valuations, specifically focusing on two essential metrics: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and SDE (Seller’s Discretionary Earnings). These metrics are more than just finance jargon—they are crucial for accurately valuing your law firm or any small business.

Victoria shares practical insights into how these metrics differ and why it's essential to use both to get a complete picture of your business’s financial health, especially when preparing for a sale. Whether you're a seller looking to maximize your firm's value or a buyer evaluating a potential purchase, understanding these valuation tools is key.

Key Takeaways

1.⁠ ⁠The limitations of EBITDA and how it can skew business valuation results. 2.⁠ ⁠Why SDE provides a more accurate financial picture for small businesses and law firms. 3.⁠ ⁠How to use both metrics strategically when valuing a business for sale.

 

About Victoria Collier

Victoria Collier is a seasoned attorney, entrepreneur, and expert in law firm sales and valuations. With a background in law and accounting, including her prior military service and CPA training, she brings a unique perspective on the financial intricacies of business valuations. Victoria helps transform law firms into more valuable and sellable businesses, guiding attorneys through life after law.

 

We want to hear from you!

You can leave us a rating and review in Apple Podcasts. Click here and then scroll down the page to the rating and review section.

You can also leave us a rating in Spotify by clicking here.

Connect with Victoria Collier

https://quidproquolaw.com/

Private Facebook Group

https://www.facebook.com/groups/1284225722042602

LinkedIn

https://www.linkedin.com/company/victoria-collier-coaching/

 

 

 

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode