In this episode, host Victoria Collier goes into the world of business valuations, specifically focusing on two essential metrics: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and SDE (Seller’s Discretionary Earnings). These metrics are more than just finance jargon—they are crucial for accurately valuing your law firm or any small business.

Victoria shares practical insights into how these metrics differ and why it's essential to use both to get a complete picture of your business’s financial health, especially when preparing for a sale. Whether you're a seller looking to maximize your firm's value or a buyer evaluating a potential purchase, understanding these valuation tools is key.

Key Takeaways

1.⁠ ⁠The limitations of EBITDA and how it can skew business valuation results.
2.⁠ ⁠Why SDE provides a more accurate financial picture for small businesses and law firms.
3.⁠ ⁠How to use both metrics strategically when valuing a business for sale.

About Victoria Collier

Victoria Collier is a seasoned attorney, entrepreneur, and expert in law firm sales and valuations. With a background in law and accounting, including her prior military service and CPA training, she brings a unique perspective on the financial intricacies of business valuations. Victoria helps transform law firms into more valuable and sellable businesses, guiding attorneys through life after law.

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