Understanding EBITDA: What Lenders and Buyers Look For. S9E1

The (Not Boring) Boring Small Business Bookkeeping and Accounting Podcast · Apr 23, 2026 · 10m

Your profit might be lying to you. Not all profit tells the truth. In this episode, Paul breaks down EBITDA, a key number that banks, buyers, and investors use to evaluate your business. While your standard profit and loss includes expenses like interest, taxes, depreciation, and amortization, EBITDA strips those out to show what your business actually earns at its core. That matters if you’re thinking about selling, merging, or simply understanding how healthy your business really is. A company can look profitable on paper but still struggle with cash flow, debt, or owner withdrawals, and…