Buying a Business? Scrutinize the EBITDA

Sellers show you an adjusted earnings number and call it the real profit. This video rebuilds that number three ways: as presented, as normalized, and as cash. Every add-back has to survive after the owner leaves the room. If you want to learn more book a call at Numeratus.us under General Accounting Inquiry. 00:00 Adjusted EBITDA Trap 00:46 Core Terms Explained 01:38 Four Add Back Tests 03:04 Three Column Framework 05:09 Example Numbers Setup 05:54 Owner Pay Reality Check 06:41 Family Payroll Split 07:15 Related Party Rent Math 07:51 One Time Costs Audit 08:39 Vehicles And Benefits 09:20 Normalize The EBITDA 10:18 From EBITDA To Cash 11:25 Multiple Depends On Earnings 14:14 What To Gather Tonight 16:34 Send Docs Not Stories 17:43 Walkthrough Of The Method 18:58 Deal Wrecking Lines Recap 20:23 Final Takeaways And Next Steps