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The 7-Minute Takeover S2 Ep. 30: Real Cash Flow vs. Seller’s EBITDA: How to Spot the Difference
Is the cash flow figure provided by a business seller always a true depiction of the company's profitability? In this episode of The 7-Minute Takeover, we debunk the myths surrounding financial "ad-backs" and normalized EBITDA.
Discover how to evaluate common adjustments and identify high-risk versus low-risk claims to ensure you’re making a sound investment.
Timestamps:
0:24 - What is an Ad-back? Defining the move from net income to normalized cash flow
1:02 - Calculating EBITDA: Interest, taxes, depreciation, and amortization
1:41 - Common examples of ad-backs: Owner compensation, market…
The skinny
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