Najafi Capital Video Post
Why You Can’t Trust EBITDA Multiples in M&A New
A practical look at why headline multiples can mislead, and why normalized earnings, debt, working capital, capital expenditure and customer concentration must be reviewed before relying on a valuation.
Would you buy an €8M factory that appears to trade at 5.7× EBITDA?
This Deal Autopsy rebuilds the investment case from earnings, customers, cash requirements and downside risk before the decision.
In this video, we examine:
• Why reported EBITDA is not automatically acquired EBITDA
• How customer concentration and contract rights can change the case
• Why price is different from all-in cash required
• How evidence and deal structure allocate uncertain value
CHAPTERS
00:00 The attractive headline
01:03 Rebuild the earnings
02:14 Test the customer relationship
03:27 Calculate the all-in cash requirement
04:46 Evidence before optimism
06:12 Buy, renegotiate, or pass
This is an illustrative investment-analysis case for educational purposes only. It does not constitute investment, legal, tax or financial advice.
#InvestmentAnalysis #DueDiligence #MergersAndAcquisitions
Educational information: This material is general educational information and does not constitute investment, legal, tax or financial advice.
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