Bob GauvreauAsk Bob Gauvreau Questions Based On His Training

Want to Sell Your Business? Know This Number #shorts

24 Jun 2025 · 0 min

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A short YouTube clip (Bob Gauvreau) advising business owners that when establishing a business’s value, the major benchmark is profitability measured by EBITDA (earnings before interest, taxes, depreciation, amortization). The speaker defines EBITDA as profit before depreciation, tax expense, and interest on long-term debt and stresses it shows the business’s underlying profitability.

Predominantly when we're looking at establishing a value of a business, the major benchmark is going to be on profitability, specifically known as ebitda, earnings before interest, tax, depreciation, amortization. Now, what this calculates is essentially the profitability of the business before any sort of depreciation of assets, taking out the tax expense and eliminating any interest on long term debt. So it shows the profitability of the business.