If you're a business owner thinking about a sale, one of the most important questions you'll face is: What is my business really worth?
While there are several ways to approach valuation, one metric consistently rises to the top for its simplicity and clarity: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
In this article for Philadelphia Business Journal, Michael L. Lipschutz, Director, Transaction Advisory explains how for middle market companies, especially those that are privately held, EBITDA offers a practical way to assess operational profitability and benchmark value. It strips away the noise of financing, tax structure, and accounting decisions, giving buyers and sellers a clearer view of the business’s core performance.