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QuickValue: Discover Your Value and Empower Your Business in Three Easy Steps
book

QuickValue: Discover Your Value and Empower Your Business in Three Easy Steps

by Reed Phillips, Charles Slack
November 2021
Intermediate to advanced content levelIntermediate to advanced
208 pages
4h
English
McGraw-Hill
Content preview from QuickValue: Discover Your Value and Empower Your Business in Three Easy Steps

APPENDIX 1

Income Statement Adjustments

Revenue and EBITDA are the metrics used in valuations. You will find both on your income statement. In some cases, the last entry on your income statement will be “Net Income” instead of “EBITDA.” If that is the case, you will need to make some adjustments to determine EBITDA. If your revenue or expenses include interest, or your expenses include taxes, depreciation, and amortization, these items need to be adjusted from net income to arrive at EBITDA. A quick reminder: The “ITDA” in “EBITDA” is “interest, taxes, depreciation, and amortization,” and the “EB” is “earnings before.” Interest income is subtracted from net income. Expenses for interest, taxes, depreciation, and amortization are added back. ...

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Publisher Resources

ISBN: 9781264269655