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Understanding the Bigger Picture When evaluating potential investments, many private equity firms instinctively gravitate towards EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). It’s a quick snapshot of operating profitability that often dominates financial conversations. However, savvy investors recognize EBITDA as merely a starting point—not the whole story. Here’s the reality: EBITDA can obscure critical … Read more

In the world of private equity, accurate financial reporting is the lifeblood that informs deal structures, valuations, and exit strategies. Yet many businesses—even some beyond the startup stage—still rely on the cash basis of accounting to gauge performance. Others swear by accrual. The choice might seem trivial, but in fact, it can drastically alter your … Read more

Introduction: The Lightbulb Moment In the world of private equity, the allure of ownership can be intoxicating. There’s a sense of pride—perhaps even ego—attached to how large your equity slice is in any given investment. After all, a bigger slice typically means greater returns, right? But there’s a catch to this fixation on “more”—it can … Read more