{"id":4458,"date":"2025-11-22T16:39:32","date_gmt":"2025-11-22T15:39:32","guid":{"rendered":"https:\/\/maraz.es\/?p=4458"},"modified":"2026-07-22T18:48:51","modified_gmt":"2026-07-22T16:48:51","slug":"how-to-interpret-ev-ebitda","status":"publish","type":"post","link":"https:\/\/maraz.es\/en\/how-to-interpret-ev-ebitda\/","title":{"rendered":"How to Interpret EV\/EBITDA in M&#038;A and Business Valuation"},"content":{"rendered":"<p data-start=\"402\" data-end=\"827\">When an entrepreneur considers selling their company, bringing in a private equity fund, or admitting new shareholders, the big question is always the same: <strong data-start=\"559\" data-end=\"598\">\u201cwhat is my business really worth?\u201d<\/strong> In M&amp;A transactions, one of the most widely used tools to answer that question is <strong data-start=\"681\" data-end=\"709\">multiple-based valuation<\/strong>, and within that approach, the <strong data-start=\"741\" data-end=\"763\">EV\/EBITDA multiple<\/strong> (the relationship between <strong data-start=\"790\" data-end=\"810\">Enterprise Value<\/strong> and <strong data-start=\"815\" data-end=\"825\">EBITDA<\/strong>).<\/p>\n<p data-start=\"829\" data-end=\"1236\">The logic is similar to valuing a property: you analyse the asset (location, size, condition), observe the prices achieved by comparable properties, and apply an average price per square metre to the property you want to value. With companies, something similar happens: you identify a set of comparable businesses, calculate their market multiples, and apply them to the target company\u2019s financial metrics.<\/p>\n<p data-start=\"1238\" data-end=\"1481\">This ratio tells you <strong data-start=\"1259\" data-end=\"1284\">how many times EBITDA<\/strong> a buyer is paying for the business. It is used extensively in M&amp;A and valuation because it allows you to compare companies with different debt and depreciation profiles on a more consistent basis.<\/p>\n<p data-start=\"1483\" data-end=\"1918\">At Maraz Corporate Finance we use this approach daily in <strong data-start=\"1540\" data-end=\"1554\">mid-market<\/strong> transactions (companies with \u20ac10\u2013\u20ac300 million of turnover) and, in particular, with <strong data-start=\"1639\" data-end=\"1666\">family-owned businesses<\/strong> in the Valencian Community, Murcia, Castilla\u2013La Mancha and the Balearic Islands. The goal is not to \u201cforce\u201d a multiple, but to understand what the market is paying for similar businesses and how to justify an attractive valuation range for the seller.<\/p>\n<h2 data-start=\"1925\" data-end=\"1975\">The key role of EV\/EBITDA in business valuation<\/h2>\n<p data-start=\"1977\" data-end=\"2215\">In business valuation, the objective is not simply to \u201cput a number on it\u201d, but to arrive at a reasonable value that can be defended before investors, buyers, lenders and\u2014very often\u2014the owning family. EV\/EBITDA is used precisely for that:<\/p>\n<ul>\n<li data-start=\"2219\" data-end=\"2347\">It helps estimate <strong data-start=\"2237\" data-end=\"2257\">Enterprise Value<\/strong> (company value) based on multiples observed in comparable transactions or listed peers.<\/li>\n<li data-start=\"2350\" data-end=\"2486\">It makes it easier to compare offers from different buyers (for example, private equity vs strategic buyers) on a like-for-like basis.<\/li>\n<li data-start=\"2489\" data-end=\"2593\">It helps cross-check outcomes against other methodologies such as <strong data-start=\"2555\" data-end=\"2562\">DCF<\/strong> or other comparable multiples.<\/li>\n<\/ul>\n<p data-start=\"2595\" data-end=\"3170\">In this context, EV\/EBITDA does not replace a full <strong data-start=\"2646\" data-end=\"2759\"><a class=\"decorated-link\" href=\"https:\/\/maraz.es\/en\/business-valuation-sale\/\" target=\"_new\" rel=\"noopener\" data-start=\"2672\" data-end=\"2750\">business valuation report <\/a><\/strong>\u00a0but it is a very useful indicator to test whether a proposed price is aligned with what is being paid in the market for similar businesses\u2014and whether an additional premium is justified (for example, due to synergies, the management team, or positioning in defensible niches).<\/p>\n<h3 data-start=\"3172\" data-end=\"3246\">What EV\/EBITDA is and why it matters so much in corporate transactions<\/h3>\n<p data-start=\"3248\" data-end=\"3535\">The EV\/EBITDA ratio indicates how many times EBITDA the market (or a buyer) is implicitly paying for the business as a whole. That is why it is a core reference in corporate transactions and M&amp;A processes: it links the company\u2019s total value to the operating performance that supports it.<\/p>\n<p data-start=\"3537\" data-end=\"3811\">It is also relatively neutral to capital structure, because it removes the effect of how the company is financed (more or less debt, interest rates, etc.), which makes it particularly suitable for comparing different companies in sale processes or investor entry situations.<\/p>\n<p data-start=\"3813\" data-end=\"3832\"><strong>EV\/EBITDA connects:<\/strong><\/p>\n<ul>\n<li data-start=\"3836\" data-end=\"3977\"><strong data-start=\"3836\" data-end=\"3879\">Enterprise Value (EV) or Company Value:<\/strong> the value of the business as a whole, as if it had neither net financial debt nor surplus cash.<\/li>\n<li data-start=\"3980\" data-end=\"4118\"><strong data-start=\"3980\" data-end=\"4018\">Equity Value (EqV) or Share Value:<\/strong> market capitalisation (or the agreed value for 100% of the shares\/quotas in an unlisted company).<\/li>\n<li data-start=\"4121\" data-end=\"4192\"><strong data-start=\"4121\" data-end=\"4150\">NFD (Net Financial Debt):<\/strong> interest-bearing debt minus surplus cash.<\/li>\n<\/ul>\n<p data-start=\"4194\" data-end=\"4286\">The relationship between EqV and EV is: <strong data-start=\"4234\" data-end=\"4252\">EqV = EV \u2013 NFD<\/strong>. Rearranging: <strong data-start=\"4267\" data-end=\"4285\">EV = EqV + NFD<\/strong>.<\/p>\n<p data-start=\"4288\" data-end=\"4514\">In other words, the value of the shares (EqV) equals the value of the business (EV) minus Net Financial Debt; or, viewed another way, the value of the business (EV) equals the value of the shares (EqV) plus Net Financial Debt.<\/p>\n<p data-start=\"4516\" data-end=\"4709\">Example: a company whose shares (EqV) are worth \u20ac100 million and which has Net Financial Debt of \u20ac30 million would have an Enterprise Value (EV) of <strong data-start=\"4664\" data-end=\"4708\">EV = EqV + NFD = 100 + 30 = \u20ac130 million<\/strong>.<\/p>\n<p data-start=\"4711\" data-end=\"4863\">Or, a company with an EV of \u20ac130 million and Net Financial Debt of \u20ac30 million would have a share value of <strong data-start=\"4818\" data-end=\"4862\">EqV = EV \u2013 NFD = 130 \u2013 30 = \u20ac100 million<\/strong>.<\/p>\n<p data-start=\"4867\" data-end=\"5011\"><strong data-start=\"4867\" data-end=\"4878\">EBITDA:<\/strong> earnings before interest, taxes, depreciation and amortisation, which approximates the business\u2019s recurring operating profitability.<\/p>\n<blockquote data-start=\"5013\" data-end=\"5067\">\n<p data-start=\"5015\" data-end=\"5067\"><strong data-start=\"5015\" data-end=\"5067\">EV\/EBITDA = Enterprise Value \/ Normalised EBITDA<\/strong><\/p>\n<\/blockquote>\n<p data-start=\"5069\" data-end=\"5261\">This approach makes it possible to compare companies with different debt structures, tax profiles or depreciation policies, focusing on their ability to generate sustainable operating results. In practice, EV\/EBITDA is often the best compromise between simplicity, comparability and economic relevance\u2014provided EBITDA has been properly normalised.<\/p>\n<h3 data-start=\"5419\" data-end=\"5504\">Advantages and limitations of multiple-based valuation vs other valuation methods<\/h3>\n<p data-start=\"5506\" data-end=\"5608\"><strong>Multiple-based valuation has clear strengths, but also limitations that are important to keep in mind.<\/strong><\/p>\n<p data-start=\"5610\" data-end=\"5661\"><strong data-start=\"5610\" data-end=\"5661\">Advantages of using EV\/EBITDA vs other methods:<\/strong><\/p>\n<ul>\n<li data-start=\"5664\" data-end=\"5758\">It is relatively fast and requires less information than a discounted cash flow (DCF) model.<\/li>\n<li data-start=\"5761\" data-end=\"5852\">It helps cross-check other valuation methodologies (DCF, adjusted net asset value, etc.).<\/li>\n<li data-start=\"5855\" data-end=\"5991\">It incorporates information already reflected in the market, particularly when using listed peers and recent transactions as references.<\/li>\n<\/ul>\n<p data-start=\"5993\" data-end=\"6008\"><strong data-start=\"5993\" data-end=\"6008\">Weaknesses:<\/strong><\/p>\n<ul>\n<li data-start=\"6011\" data-end=\"6130\">Selecting the right comparables is critical and requires deep sector knowledge. Poor selection undermines the result.<\/li>\n<li data-start=\"6133\" data-end=\"6245\">Multiples rely on metrics that are largely accounting-based and sensitive to tax criteria and local standards.<\/li>\n<li data-start=\"6248\" data-end=\"6328\">They do not capture capital intensity (CAPEX) and its timing in enough detail.<\/li>\n<li data-start=\"6331\" data-end=\"6456\">When applying listed-company multiples to unlisted companies, it is necessary to adjust for illiquidity and size differences.<\/li>\n<\/ul>\n<p data-start=\"6458\" data-end=\"6675\"><strong>For these reasons, multiples (including EV\/EBITDA) should be understood as complementary to DCF rather than a substitute. In professional practice, both approaches should converge towards a reasonable valuation range.<\/strong><\/p>\n<h2 data-start=\"6682\" data-end=\"6740\">Key drivers when calculating EV\/EBITDA in M&amp;A processes<\/h2>\n<h3 data-start=\"6742\" data-end=\"6807\">The importance of choosing the right comparables (peer group)<\/h3>\n<p data-start=\"6809\" data-end=\"7058\">The quality of a multiples-based valuation is only as good as the peer group selection. An unsuitable set of comparables can lead to completely misleading conclusions. <strong>To be useful, comparable companies should resemble the target in aspects such as:<\/strong><\/p>\n<ul>\n<li data-start=\"7062\" data-end=\"7147\">Activity and business model: similar products and services, comparable revenue mix.<\/li>\n<li data-start=\"7150\" data-end=\"7233\">Markets and countries of operation: similar regulation, cycles and risk profiles.<\/li>\n<li data-start=\"7236\" data-end=\"7310\">Margins and profitability: similar EBITDA levels and returns on capital.<\/li>\n<li data-start=\"7313\" data-end=\"7374\">Growth prospects: expected evolution of sales and earnings.<\/li>\n<li data-start=\"7377\" data-end=\"7450\">Size and positioning: market share, brand awareness, competitive niche.<\/li>\n<li data-start=\"7453\" data-end=\"7489\">Management quality and track record.<\/li>\n<\/ul>\n<p data-start=\"7491\" data-end=\"7867\">In practice, it is almost impossible to find \u201ctwin\u201d companies, but it is critical to reach a reasonable level of comparability. At Maraz, we invest significant time in this preliminary phase: we analyse the target in detail (history, sector, Porter\u2019s 5 Forces, shareholder structure, operating countries, etc.) and only then define the set of peers and reference transactions.<\/p>\n<h3 data-start=\"7869\" data-end=\"7898\">Truly \u201cnormalised\u201d EBITDA<\/h3>\n<p data-start=\"7900\" data-end=\"7957\"><strong>On the EBITDA side, the main adjustments usually include:<\/strong><\/p>\n<ul>\n<li data-start=\"7961\" data-end=\"8085\">Removing non-recurring income and expenses (one-off severance costs, closure of business lines, exceptional grants, etc.).<\/li>\n<li data-start=\"8088\" data-end=\"8200\">Adjusting shareholder-director remuneration if it is above or below market (very common in family businesses).<\/li>\n<li data-start=\"8203\" data-end=\"8364\">Removing atypical projects or contracts that will not repeat. Removing income and expenses unrelated to the business (shareholders or other related companies).<\/li>\n<li data-start=\"8367\" data-end=\"8437\">Harmonising accounting policies between the target and the peer group.<\/li>\n<\/ul>\n<p data-start=\"8439\" data-end=\"8570\">Only then will the resulting multiple be genuinely comparable to those observed in sector transactions or similar listed companies.<\/p>\n<h3 data-start=\"8572\" data-end=\"8647\">Other considerations to calculate EV\/EBITDA correctly in an M&amp;A process<\/h3>\n<p data-start=\"8649\" data-end=\"8901\">More important than quoting a \u201cmarket multiple\u201d is ensuring that both <strong data-start=\"8719\" data-end=\"8725\">EV<\/strong> and <strong data-start=\"8730\" data-end=\"8740\">EBITDA<\/strong> have been calculated correctly. A small error in either can translate into several million euros in the final price. When calculating EV, it is worth reviewing:<\/p>\n<ul>\n<li data-start=\"8905\" data-end=\"9033\"><strong data-start=\"8905\" data-end=\"8928\">Net financial debt:<\/strong> bank loans, credit lines, bonds, shareholder loans and other interest-bearing debt, less surplus cash.<\/li>\n<li data-start=\"9036\" data-end=\"9204\"><strong data-start=\"9036\" data-end=\"9081\">Leases and off-balance-sheet liabilities:<\/strong> under standards such as IFRS 16, many leases are recognised as debt; it is important to harmonise criteria across peers.<\/li>\n<li data-start=\"9207\" data-end=\"9343\"><strong data-start=\"9207\" data-end=\"9249\">Provisions and contingent liabilities:<\/strong> litigation, labour commitments, significant guarantees\u2026 may require additional adjustments.<\/li>\n<li data-start=\"9346\" data-end=\"9482\"><strong data-start=\"9346\" data-end=\"9371\">Non-operating assets:<\/strong> properties or investments not part of the business \u201ccore\u201d should be isolated to avoid distorting the multiple.<\/li>\n<\/ul>\n<h2 data-start=\"9489\" data-end=\"9559\">How to interpret the EV\/EBITDA multiple in business decision-making<\/h2>\n<p data-start=\"9561\" data-end=\"9791\"><strong>Once the multiple has been calculated, the most delicate part begins: interpreting it in context. An EV\/EBITDA of 7x means nothing on its own unless we compare it with the sector, the quality of the business and market conditions.<\/strong><\/p>\n<h3 data-start=\"9793\" data-end=\"9839\">Typical ranges and what moves the multiple<\/h3>\n<p data-start=\"9841\" data-end=\"9879\"><strong>At a very high level, you may observe:<\/strong><\/p>\n<ul>\n<li data-start=\"9883\" data-end=\"10082\">Stable B2B services, distribution or light industrial businesses with good visibility and reasonable margins: typical ranges between <strong data-start=\"10016\" data-end=\"10039\">6x and 8x EV\/EBITDA<\/strong>, depending on risk, size and recurrence.<\/li>\n<li data-start=\"10085\" data-end=\"10241\">Companies with a strong technology component, recurring revenues (SaaS, software, platforms) and high growth: multiples that can exceed <strong data-start=\"10221\" data-end=\"10238\">10x EV\/EBITDA<\/strong>.<\/li>\n<li data-start=\"10244\" data-end=\"10355\">Highly mature, cyclical sectors or sectors under intense competitive pressure: significantly lower multiples.<\/li>\n<li data-start=\"10358\" data-end=\"10431\">A distribution business (buy-sell) range between <strong data-start=\"10407\" data-end=\"10430\">5x and 6x EV\/EBITDA<\/strong>.<\/li>\n<\/ul>\n<p data-start=\"10433\" data-end=\"10468\"><strong>Beyond sector, key drivers include:<\/strong><\/p>\n<ul>\n<li data-start=\"10472\" data-end=\"10521\">Stage of the economic cycle and interest rates.<\/li>\n<li data-start=\"10524\" data-end=\"10555\">Historic and expected growth.<\/li>\n<li data-start=\"10558\" data-end=\"10602\">Company size and customer diversification.<\/li>\n<li data-start=\"10605\" data-end=\"10663\">Quality of the management team and corporate governance.<\/li>\n<li data-start=\"10666\" data-end=\"10735\">Potential synergies for a specific buyer (strategic buyers or funds).<\/li>\n<\/ul>\n<h3 data-start=\"10737\" data-end=\"10783\">Trading multiples vs transaction multiples<\/h3>\n<p data-start=\"10785\" data-end=\"10829\">Another key point is to distinguish between:<\/p>\n<ul>\n<li data-start=\"10833\" data-end=\"10984\"><strong data-start=\"10833\" data-end=\"10855\">Trading multiples:<\/strong> those observed in listed companies (based on market price). They reflect typically minority stakes, without a control premium.<\/li>\n<li data-start=\"10987\" data-end=\"11160\"><strong data-start=\"10987\" data-end=\"11024\">Comparable transaction multiples:<\/strong> based on prices actually paid in M&amp;A transactions for similar companies, where there is often a control premium and expected synergies.<\/li>\n<\/ul>\n<p data-start=\"11162\" data-end=\"11366\">In a sale of 100% of an unlisted company, the relevant range is usually closer to transaction multiples than to stock-market multiples, once differences in size, risk and liquidity have been adjusted for.<\/p>\n<h3 data-start=\"11368\" data-end=\"11410\">Warning signs when analysing EV\/EBITDA<\/h3>\n<p data-start=\"11414\" data-end=\"11449\"><strong data-start=\"11414\" data-end=\"11449\">Multiple well below the market:<\/strong><\/p>\n<ul>\n<li data-start=\"11454\" data-end=\"11550\">It may indicate an opportunity (undervalued company, need for a quick sale, operational upside).<\/li>\n<li data-start=\"11555\" data-end=\"11660\">Or it may reflect hidden risks: dependence on key customers, succession issues, litigation, high CAPEX\u2026<\/li>\n<\/ul>\n<p data-start=\"11663\" data-end=\"11698\"><strong data-start=\"11663\" data-end=\"11698\">Multiple well above the market:<\/strong><\/p>\n<ul>\n<li data-start=\"11703\" data-end=\"11802\">It may be justified by an exceptional competitive position, strong growth, or meaningful synergies.<\/li>\n<li data-start=\"11807\" data-end=\"11874\">But it can also signal unrealistic expectations or a sector bubble.<\/li>\n<\/ul>\n<p data-start=\"11876\" data-end=\"12017\">Correct interpretation always requires combining quantitative analysis (multiples, comparables, DCF) with a qualitative view of the business.<\/p>\n<h2 data-start=\"12024\" data-end=\"12097\">Practical case study: applying EV\/EBITDA in M&amp;A and business valuation<\/h2>\n<p data-start=\"12099\" data-end=\"12399\">Imagine a family-owned industrial company\u2014\u201cCompany X\u201d\u2014in the metal sector, with \u20ac45 million of revenue and operations in Spain and Portugal. The shareholders are considering selling 100% of the equity to a financial investor and want to know whether incoming offers truly reflect the company\u2019s value.<\/p>\n<h3 data-start=\"12401\" data-end=\"12424\">Transaction context<\/h3>\n<ul>\n<li data-start=\"12428\" data-end=\"12448\">Turnover: <strong data-start=\"12438\" data-end=\"12446\">\u20ac45m<\/strong><\/li>\n<li data-start=\"12451\" data-end=\"12491\">Reported EBITDA (last year): <strong data-start=\"12480\" data-end=\"12489\">\u20ac6.0m<\/strong><\/li>\n<li data-start=\"12494\" data-end=\"12526\">Gross financial debt: <strong data-start=\"12516\" data-end=\"12524\">\u20ac14m<\/strong><\/li>\n<li data-start=\"12529\" data-end=\"12554\">Available cash: <strong data-start=\"12545\" data-end=\"12552\">\u20ac2m<\/strong><\/li>\n<li data-start=\"12557\" data-end=\"12585\">Net financial debt: <strong data-start=\"12577\" data-end=\"12585\">\u20ac12m<\/strong><\/li>\n<\/ul>\n<p data-start=\"12587\" data-end=\"12739\">The company has a stable track record, a diversified industrial customer base, and a professionalised management team, although it remains family-owned.<\/p>\n<p data-start=\"12741\" data-end=\"12916\">The financial adviser\u2019s objective is to estimate a reasonable <strong data-start=\"12803\" data-end=\"12828\">Enterprise Value (EV)<\/strong> range and, from that, the <strong data-start=\"12855\" data-end=\"12871\">Equity Value<\/strong> to guide negotiations with potential buyers.<\/p>\n<h3 data-start=\"12918\" data-end=\"12950\">Step 1: EBITDA normalisation<\/h3>\n<p data-start=\"12952\" data-end=\"13040\">A detailed review of the profit and loss account identifies several non-recurring items:<\/p>\n<ul>\n<li data-start=\"13044\" data-end=\"13126\">\u20ac0.4m of severance costs related to the closure of a discontinued business line.<\/li>\n<li data-start=\"13129\" data-end=\"13201\">\u20ac0.3m of an exceptional grant for an R&amp;D project that will not repeat.<\/li>\n<li data-start=\"13204\" data-end=\"13350\">The CEO is a shareholder and is paid significantly below market; it is estimated that \u20ac0.2m should be added to bring remuneration to market level.<\/li>\n<\/ul>\n<p data-start=\"13352\" data-end=\"13398\">Start from reported EBITDA (\u20ac6.0m) and adjust:<\/p>\n<p data-start=\"13400\" data-end=\"13640\">Remove non-recurring expenses that reduced EBITDA: <strong data-start=\"13451\" data-end=\"13461\">+\u20ac0.4m<\/strong> (severance)<br data-start=\"13473\" data-end=\"13476\" \/>Remove non-recurring income that inflated EBITDA: <strong data-start=\"13526\" data-end=\"13536\">\u2013\u20ac0.3m<\/strong> (one-off grant)<br data-start=\"13552\" data-end=\"13555\" \/>Adjust CEO remuneration to market level: <strong data-start=\"13596\" data-end=\"13606\">\u2013\u20ac0.2m<\/strong> (higher recurring personnel cost)<\/p>\n<p data-start=\"13642\" data-end=\"13702\"><strong data-start=\"13642\" data-end=\"13702\">Normalised EBITDA: \u20ac6.0m + \u20ac0.4m \u2013 \u20ac0.3m \u2013 \u20ac0.2m = \u20ac5.9m<\/strong><\/p>\n<p data-start=\"13704\" data-end=\"13813\">This is the adjusted EBITDA, which better reflects the real capacity to generate recurring operating results.<\/p>\n<h3 data-start=\"13815\" data-end=\"13879\">Step 2: Comparable analysis and EV\/EBITDA multiple selection<\/h3>\n<p data-start=\"13881\" data-end=\"13890\">Identify:<\/p>\n<ul>\n<li data-start=\"13894\" data-end=\"13997\">5 listed European companies in the industrial \/ metal-mechanics sector with similar size and margins.<\/li>\n<li data-start=\"14000\" data-end=\"14072\">3 recent transactions involving comparable companies in Spain and Italy.<\/li>\n<\/ul>\n<p data-start=\"14074\" data-end=\"14096\">From these references:<\/p>\n<ul>\n<li data-start=\"14100\" data-end=\"14155\">EV\/EBITDA trading multiples (listed): <strong data-start=\"14138\" data-end=\"14153\">6.5x \u2013 7.5x<\/strong><\/li>\n<li data-start=\"14158\" data-end=\"14258\">EV\/EBITDA transaction multiples (100% sale): <strong data-start=\"14203\" data-end=\"14218\">7.0x \u2013 8.5x<\/strong>, typically including a control premium.<\/li>\n<\/ul>\n<p data-start=\"14260\" data-end=\"14274\">Adjusting for:<\/p>\n<ul>\n<li data-start=\"14278\" data-end=\"14338\">Slightly smaller size of \u201cCompany X\u201d vs some listed peers.<\/li>\n<li data-start=\"14341\" data-end=\"14421\">Reasonable risk profile (diversified portfolio, but somewhat cyclical sector).<\/li>\n<li data-start=\"14424\" data-end=\"14481\">Good level of professionalisation of the management team.<\/li>\n<\/ul>\n<p data-start=\"14483\" data-end=\"14565\">Conclusion: a reasonable EV\/EBITDA range is <strong data-start=\"14527\" data-end=\"14543\">7.0x to 8.0x<\/strong> on normalised EBITDA.<\/p>\n<h3 data-start=\"14567\" data-end=\"14624\">Step 3: Enterprise Value and Equity Value calculation<\/h3>\n<p data-start=\"14626\" data-end=\"14690\">With normalised EBITDA of \u20ac5.9m and the selected multiple range:<\/p>\n<ul>\n<li data-start=\"14694\" data-end=\"14742\">Low case (7.0x): <strong data-start=\"14711\" data-end=\"14740\">EV = \u20ac5.9m \u00d7 7.0 = \u20ac41.3m<\/strong><\/li>\n<li data-start=\"14745\" data-end=\"14792\">High case (8.0x): <strong data-start=\"14763\" data-end=\"14792\">EV = \u20ac5.9m \u00d7 8.0 = \u20ac47.2m<\/strong><\/li>\n<\/ul>\n<p data-start=\"14794\" data-end=\"14852\">Estimated Enterprise Value (EV) range: <strong data-start=\"14833\" data-end=\"14852\">\u20ac41.3m \u2013 \u20ac47.2m<\/strong><\/p>\n<p data-start=\"14854\" data-end=\"14913\">Then derive Equity Value by subtracting net financial debt:<\/p>\n<p data-start=\"14915\" data-end=\"14957\">Net financial debt = <strong data-start=\"14936\" data-end=\"14957\">\u20ac14m \u2013 \u20ac2m = \u20ac12m<\/strong><\/p>\n<ul>\n<li data-start=\"14961\" data-end=\"15014\">Low case: <strong data-start=\"14971\" data-end=\"15012\">Equity Value = \u20ac41.3m \u2013 \u20ac12m = \u20ac29.3m<\/strong><\/li>\n<li data-start=\"15017\" data-end=\"15069\">High case: <strong data-start=\"15028\" data-end=\"15069\">Equity Value = \u20ac47.2m \u2013 \u20ac12m = \u20ac35.2m<\/strong><\/li>\n<\/ul>\n<p data-start=\"15071\" data-end=\"15142\">A reasonable range for the equity value: <strong data-start=\"15112\" data-end=\"15141\">approximately \u20ac29m \u2013 \u20ac35m<\/strong>.<\/p>\n<p data-start=\"15144\" data-end=\"15226\">This becomes the internal reference range the adviser will use to evaluate offers.<\/p>\n<h2 data-start=\"15233\" data-end=\"15311\">How Maraz Corporate Finance supports family-owned and mid-market businesses<\/h2>\n<p data-start=\"15313\" data-end=\"15651\">At Maraz Corporate Finance, we combine all of this theory with the real-world situation of the companies we work with: family businesses and mid-to-large companies (\u20ac10m\u2013\u20ac300m turnover) with national presence, especially in Valencia, Alicante, Castell\u00f3n, Murcia and the Balearic Islands. In a sale process, fund entry or financing search:<\/p>\n<ul>\n<li data-start=\"15655\" data-end=\"15736\">We analyse the business in depth (model, sector, team, risks and value levers).<\/li>\n<li data-start=\"15739\" data-end=\"15815\">We define a rigorous peer group and a real set of comparable transactions.<\/li>\n<li data-start=\"15818\" data-end=\"15936\">We adjust and normalise EBITDA so it reflects sustainable profitability\u2014particularly important in family businesses.<\/li>\n<li data-start=\"15939\" data-end=\"16059\">We calculate and cross-check relevant multiples (EV\/EBITDA, EV\/Sales, P\/E, etc.) with DCF models and synergy analysis.<\/li>\n<li data-start=\"16062\" data-end=\"16217\">We support the owner throughout the negotiation, helping defend a robust valuation range and structure the deal (price, timelines, earn-outs, warranties\u2026).<\/li>\n<\/ul>\n<p data-start=\"16219\" data-end=\"16542\"><strong>If you are considering selling your company, bringing in a partner, or simply want to understand the market value of your business, we would be pleased to review your case and explain\u2014using data and comparables\u2014what multiples are being paid in your sector today and how to position your company at the top end of the range.<\/strong><\/p>\n<h2 data-start=\"16549\" data-end=\"16624\">Final considerations for a robust valuation using the EV\/EBITDA multiple<\/h2>\n<p data-start=\"16626\" data-end=\"16990\">In short, EV\/EBITDA is a powerful tool\u2014but only when used rigorously. A solid valuation requires, first, well-adjusted data: an Enterprise Value correctly calculated (including net financial debt, relevant liabilities and non-operating assets) and a truly normalised EBITDA, cleansed of non-recurring items and aligned with the operational reality of the business.<\/p>\n<p data-start=\"16992\" data-end=\"17282\">Second, it requires contextual interpretation: the multiple only becomes meaningful when compared with similar companies and transactions, considering the sector, the economic cycle, the company\u2019s size, its risk profile, its management team, and the potential synergies for each buyer type.<\/p>\n<p data-start=\"17284\" data-end=\"17518\">That is why, rather than searching for a \u201cmagic number\u201d, the aim is to build a reasonable and defensible valuation range where EV\/EBITDA sits alongside other methodologies (such as DCF) and a deep qualitative analysis of the business.<\/p>\n<p data-start=\"17520\" data-end=\"17769\">In significant processes\u2014sale of a family business, fund entry, shareholder reorganisation or financing\u2014expert support often makes the difference between accepting a market-imposed price and being able to explain and defend the company\u2019s true value.<\/p>\n<p data-start=\"17771\" data-end=\"18042\"><strong>If you are considering an <a href=\"https:\/\/maraz.es\/en\/mergers-acquisitions\/\">M&amp;A process<\/a>, investor entry, or simply want to know the value of your company, the Maraz Corporate Finance team can help you analyse the business, define the right multiple range, and structure the transaction to maximise value for shareholders.<\/strong><\/p>\n<p data-start=\"18044\" data-end=\"18183\"><strong><span style=\"color: #333399;\"><a class=\"decorated-link\" style=\"color: #333399;\" href=\"https:\/\/www.linkedin.com\/\" target=\"_new\" rel=\"noopener\" data-start=\"18070\" data-end=\"18129\">Javier de Rojas Roca de Togores<\/a><\/span><\/strong><\/p>\n<p data-start=\"18044\" data-end=\"18183\"><strong><span style=\"color: #333399;\">Partner \u2013 Maraz Corporate Finance<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When an entrepreneur considers selling their company, bringing in a private equity fund, or admitting new shareholders, the big question is always the same: \u201cwhat is my business really worth?\u201d In M&amp;A transactions, one of the most widely used tools to answer that question is multiple-based valuation, and within that approach, the EV\/EBITDA multiple (the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":3664,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[335],"tags":[],"class_list":["post-4458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-valuation"],"acf":[],"_links":{"self":[{"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/posts\/4458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/comments?post=4458"}],"version-history":[{"count":0,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/posts\/4458\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/media\/3664"}],"wp:attachment":[{"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/media?parent=4458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/categories?post=4458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maraz.es\/en\/wp-json\/wp\/v2\/tags?post=4458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}