Private Company Valuation Mistakes & Case Studies

[@financekid3163]

For those of you who have not seen my initial private company valuation series talking about the fundamentals of business value and my detailed approach, check out the video link below to learn more. Thanks for your support and for watching! kzbin.info/www/bejne/gYDSnpWNbdaCf7s

[@financekid3163]

The Part 2 video on private company valuation mistakes & case studies has been posted to the channel. Check out the link below! kzbin.info/www/bejne/p2ecnKh-e9CHiac

[@Clem_dow]

12:02, does the multiple always equal the amount of years where the ebitda level is expected to be maintained? Is that the rule of thumb?

[@Septumsempra8818]

Are we getting a VC valuation series?

[@Clem_dow]

When you adjust EBITDA to account for CAPEX and arrive at net adjusted cash flow, are you multiplying that ebit value by the multiple that the the original ebidta value was at or are you multiplying it in the new range it falls in? For example let’s say 1 million ebidta is 4 times and 500k is 2. If a company was at 1 million ebidta but after needed capex their adjusted cash flow is 500k. Do you multiply it by 2 or 4. Thanks!!

[@leevancleofordcale7808]

Thanks @FinanceKid, real life case study truly can relate to this. Do you have online course especially as sell-side advisor walking through whole process and best practices.

[@financekid3163]

Nothing at the moment, maybe in the future!

[@ralllao7295]

Amazing! :)

[@financekid3163]

Thanks! 😄

[@Clem_dow]

how do ether ebitda earnings and the multiple correlate? Could you explain the idea of buying earnings please? Is it the amount of years to recoup what you invested?

[@AricCAN]

Question please: the adjustment in target salary upward to reduce the EBITDA sounds like the opposite of costing saving plans for acquires. Is it really necessary to do so? We bought businesses in portfolio companies and the CFO in the portfolio company keep doing Bolt-on M&As and he got paid less than the associate at the fund level (we are a mega fund) salary and everything was fine.

[@financekid3163]

It definitely depends on the buyer. This is the EBITDA calculation assuming a standalone buyer with no synergies (which is the starting point). The "true" EBITDA to the buyer may be different however we usually dont see buyers give full credit to the synergies they would get from a deal.

[@scotolivera8207]

Would It be possible like Making a video walking us through the process using an excel spreadsheet ?

[@dex464]

Love your videos! Do you share slides or have a link we can access slides?

[@financekid3163]

Thanks for watching! No sorry the slides are not available to share.

[@keithleyjarvis5663]

Part 2 next week?

[@financekid3163]

Yes its coming out next week. Stay tuned!