How to calculate normalized EBITDA when selling a business? How to calculate EBITDA to determine private company valuation? What is considered an EBITDA Addback/Normalization? How do I normalize my EBITDA? In today's video we will be discussing in detail EBITDA normalizations for buyers/sellers when dealing with private lower midmarket M&A transactions. We will be answering the following questions in more detail:

1) How to normalize your salary when selling your business?
2) What types of personal benefits/discretionary costs can be normalized?
3) Are COVID subsidies considered an addback?
4) Are gains/losses on equipment sales considered an addback?
5) Can I addback cost synergies/savings realized from equipment, technology and real estate investments?
6) What other common addbacks exist for EBITDA normalization purposes?

EBITDA Rule of Thumb: Its always important to remember, a buyer is using your historical EBITDA to estimate the future cash flow they are buying and paying for. Any costs/revenues that are considered sustainable should be justifiable as an EBITDA addback however if the cost or gain is nonrecurring, it would be excluded from the adjusted EBITDA.

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Roblee Capital is a Torontobased M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buyside M&A services. We work with Canadianbased business owners looking to sell their lower midmarket business. Check out our website at;

https://www.robleecapital.ca/