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Business Strategy Insights
Famed Investor: References to EBITDA make us shudder …
November 21, 2010 / in Business Strategy, Exit Planning, Sell a Business / by Al Statz
… does management think the tooth fairy pays for capital expenditures? Article Published December 6, 2010 — North Bay Business Journal This title is a quote from Warren Buffett’s letter to shareholders in Berkshire Hathaway’s 2000 annual report. EBITDA (earnings before interest, taxes, depreciation and amortization) is a good financial metric to use in analyzing, comparing and valuing companies, but, as business owners and investors, we need to understand its limitations. EBITDA is one of several …