Send us Fan Mail Your profit might be lying to you. Not all profit tells the truth. In this episode, Paul breaks down EBITDA, a key number that banks, buyers, and investors use to evaluate your business. While your standard profit and loss includes expenses like interest, taxes, depreciation, and amortization, EBITDA strips those out to show what your business actually earns at its core. That matters if you’re thinking about selling, merging, or simply understanding how healthy your business ...

The (Not Boring) Boring Small Business Bookkeeping and Accounting Podcast

Paul Rosenblum, The Bookkeeping Mensch | 25+ Years of Bookkeeping, Small Business Finances, and Tax Insights

Understanding EBITDA: What Lenders and Buyers Look For

APR 23, 202610 MIN
The (Not Boring) Boring Small Business Bookkeeping and Accounting Podcast

Understanding EBITDA: What Lenders and Buyers Look For

APR 23, 202610 MIN

Description

Send us Fan MailYour profit might be lying to you. Not all profit tells the truth. In this episode, Paul breaks down EBITDA, a key number that banks, buyers, and investors use to evaluate your business. While your standard profit and loss includes expenses like interest, taxes, depreciation, and amortization, EBITDA strips those out to show what your business actually earns at its core. That matters if you’re thinking about selling, merging, or simply understanding how healthy your business really is. A company can look profitable on paper but still struggle with cash flow, debt, or owner withdrawals, and EBITDA helps highlight earning potential, not the full picture. Paul also shares real client examples to show how these adjustments play out and what buyers may look for beyond this number. Listen to the full episode to understand how EBITDA works and when you should actually use it.EBITDA download: https://drive.google.com/drive/folders/1C_4Owq5WyWFsjIndVUAG_iXlQdY7AelN?usp=drive_linkSupport the show👀 We got reviewed! Why an Indie Accounting Podcast Is Not Boring! https://vocal.media/trader/why-an-indie-accounting-podcast-is-not-boring😄 Send Paul a text or 📞 voice message (include your contact info if you want a reply) https://www.buzzsprout.com/twilio/text_messages/2188873/open_sms🎧 Producer Steph: https://linktr.ee/stephfuccio💸  Website: https://bookkeepermensch.com 🎵 Music: SourceAudio: https://www.sourceaudio.com/🔉 Sound effects: https://freesound.org/people/metalfortress/sounds/611788/📨   Email:   [email protected]