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How Much Is My Insurance Agency Worth?

Sica Fletcher

essentially boils down to three major steps: Determine your insurance agency’s EBITDA Determine the standard valuation multiple for an agency of your size Multiply your EBITDA by the multiple to determine your expected payout (i.e., Interest, taxes, depreciation, and amortization are then added to this number.

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Mergers and acquisitions 101: Why they happen and what’s your worth?

Focus Investment Banking

Those questions can have many answers, but for those less familiar with M&A, in this article let’s explain why they happen and how they are calculated. The worth of a business, or valuation, is primarily based on EBITDA (Earnings before Interest, Taxes, Depreciation, & Amortization).

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How To Value an Insurance Agency

Sica Fletcher

Once completed, they should have a reliable grasp of the agency’s revenue and EBITDA, which leads to the 2nd step of the valuation process. This figure is often averaged by calculating EBITDA over the course of several years. Typically calculated annually.

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Understanding and Unraveling the Difference: EBITDA vs. Adjusted EBITDA

Solganick & Co.

November 15, 2023 Understanding and Unraveling the Difference: EBITDA and Adjusted EBITDA in Mergers and Acquisitions In the context of mergers and acquisitions, EBITDA and Adjusted EBITDA play a pivotal role in assessing the value and potential synergies of the target company.

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EBITDA x5: A Quick Insurance Agency Valuation Rule of Thumb

Sica Fletcher

Disclaimer: The article below contains a quick and easy method for calculating the ballpark value of an insurance agency using standardized market information. We call this approach, based on years of experience, “EBITDA x5. ” Over the last several years, insurance agencies have, on average, sold at between 5-7x EBITDA.

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Paper LBO

Wall Street Mojo

However, it does not involve computerized calculations. Instead, candidates must build the paper LBO model relying only on mental calculations—they use their mental abilities and create models with pen and paper. The sections included are an acquisition summary, income and cash flow statements, assumptions, and returns calculations.

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Common Adjustments to EBITDA with examples

Wizenius

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Adjusted EBITDA is calculated by taking Reported EBITDA and adjusting for any one-off or exceptional items. In other words, Adjusted EBITDA is used to illustrate the true underlying profitability of the business.