What is EBITDA? (And Why Your Business Needs it!)

What's the single most important number when it comes to selling your business? Hint: It's not your net income.

In this episode of HVAC Full Blast, Mary Carter and Stephen Ross are joined by lawyer and business consultant Dan D'Alberto to demystify one of the most critical metrics in business valuation: EBITDA. Many business owners leave millions on the table simply because they don't understand this powerful concept and how it reveals the true cash-flow capability of their company.

From understanding personal add-backs (like beach houses and boats!) to seeing how smart accounting can dramatically increase your sale price, this is a masterclass in financial strategy that every business owner needs to hear.

In this episode, you will learn:

• What EBITDA stands for (Earnings Before Interest, Taxes, Depreciation, and Amortization) and what it really measures.
• The crucial difference between Net Income, EBITDA, and Adjusted EBITDA.
• A real-world example of how a business went from $900k in net income to a $2.7 million valuation by understanding its EBITDA.
• How running personal expenses through your business impacts its final sale price.
• Actionable advice on how to prepare your financials to maximize your company's value for a future transition.

Whether you plan to sell in two years or twenty, understanding EBITDA is the key to building real, transferable wealth. Don't make a multi-million dollar mistake—watch now!

Connect with our guest:

Dan | Purpose Equity

Email: dan@purposeequity.com

Have a question for the show?

Email us at: hvac_full_blast@tranetechnologies.com

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