Business Valuation Explained: EBITDA, Risk, Multiples, and Value Drivers

Episode notes

This is the audio version of “How Business Valuation Really Works.” In this episode, Sara Vaziri and Gordon Lin discuss how valuation professionals determine what a business is worth and the factors that can significantly influence enterprise value. They break down the difference between a business valuation and a formal business appraisal, explain what EBITDA measures, and walk through the three primary valuation approaches: market, income, and asset-based valuation. Gordon also shares insights into how buyers, investors, and valuation professionals evaluate risk, future cash flows, company size, profitability, growth potential, recurring revenue, and customer concentration when assessing a business. The conversation highlights why valuation is not just about current earnings. It is also about sustainability, transferability, and how well a business can perform beyond its current owner.

• A 27-Year Business Failed Before Retirement - Here’s What Went Wrong40 / 100
• How a PEO Helps Business Owners Reduce HR, Payroll, and Compliance Risk 50 / 100
• GAAP Accounting for Business Owners: Build Buyer Trust Before an Exit 50 / 100
• Why Working Capital Can Change the Outcome of Your Business Sale
• Exit Planning for Business Owners: Build Value, Reduce Risk, and Prepare to Sell