A firm can hear a big multiple and still miss the price. The number that matters first is net adjusted EBITDA. And that number can move fast when partner pay, receivables, WIP, and addbacks hit the table.
The Multiple Is The Flashy Part
Firm owners like to ask what multiple the market is paying. It sounds clean. It sounds easy to compare across deals.
But a multiple is only useful after the earnings base is built. In this market, that base is often net adjusted EBITDA. That is the figure buyers use before they decide how aggressive they want to be.
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