Thoughts on Quality, Risk and Value
By Brian E. Christian, Partner
The value of anything is pretty simple to define. Naturally, it is what someone else, at an arm’s length, is willing to pay for it…
When it comes to the value of a middle market, privately held business, this definition is arrived at by way of the product of two critical inputs:
- The past earning power of the business as measured by the adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).