![The Importance of Business Valuation: How EBITDA and Seller's Discretionary Income Shape Your Future](https://i0.wp.com/zumifi.com/wp-content/uploads/2017/03/Valuation-Tracking-1.png?resize=150%2C150&ssl=1)
The Importance of Business Valuation
When valuing a company, traditional methods often involve looking at industry comparisons and applying valuation multiples, commonly a multiple of EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization. However, for small business owners, who often strategize to reduce their tax burden by decreasing reported profits, relying solely on EBITDA might not accurately capture the...