Founders are hearing from buyers of all shape and sizes, including competitors, strategic buyers, and "private equity" firms. It's that last group that's most confusing where knowing the terms can mean the difference between an ideal exit or one you'll regret long after you learned the differences. Give us a few minutes - it could save or make you $Millions. Maybe more!
As founders consider exiting their businesses, it's crucial to understand the landscape of potential buyers, which can broadly be categorized into strategic and financial types.
Without multiple interested parties, you're stuck being a terms taker instead of a terms maker. But fear not! There's hope on the horizon.
In the financial landscape, two key metrics often stand at the forefront of business valuation and analysis: EBIT (Earnings Before Interest and Taxes) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)
