EBITDA is one of the most commonly quoted figures in business valuation. It appears in broker marketing, Heads of Terms, and boardroom discussions. For many owners, it becomes the headline number they focus on when thinking about value. The problem is simple. EBITDA is useful, but it is not definitive. In many cases, it is not even the most important measure. Relying on EBITDA alone can lead to unrealistic expectations, poor decision making, and disappointment when real buyers enter the...

Customer concentration is one of the first issues serious buyers focus on when assessing a business. It is also one of the most misunderstood. Many owners assume that having a small number of large customers automatically damages value. Others dismiss the risk entirely, arguing that long standing relationships offset any concern. The truth sits in the middle. Customer concentration does not make a business unsaleable, but it does change how buyers assess risk, structure deals, and ultimately...

In many SMEs, the most valuable assets never appear on the balance sheet. Intellectual capital — the knowledge, processes, experience, and relationships that hold the business together — is often the true driver of future earnings. Yet most owners underestimate its importance until they prepare for an exit, valuation, or EOT transition. Buyers, however, scrutinise it closely. Understanding how to assess and present intellectual capital is essential for establishing a credible valuation. At...