Do you know which add-backs to calculate when determining your business valuation? Read this article and find out the five most common add-backs for Amazon FBA business owners.
WHAT IS EBITDA?
EBITDA means earnings before interest, taxes, depreciation, and amortization. It measures a company’s overall financial performance and is used as an alternative to net income when determining its value.
EBITDA focuses on a company’s operating decisions as it reviews a company’s profitability from its principal operations before capital structure, depreciation, and leverage are considered. Furthermore, EBITDA can be used to compare one business to another.