The transcript for "We're Goin' For The Gold" with Tracy Myers of the Advertising Arts College in San Diego, California and Bob Orenstein with International Wine Accessories in Dallas, Texas.

The transcript for this episode

last update: MAY 2007

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Going For The Gold and Getting it

A pencil plus a CPA and a calculator are important to the selling process.

Calculate Your EBITDA

HATTIE: EBITA is a method of measuring a company's performance. It means earnings before interest, taxes — depreciation if its EBITDA — and amortization.

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Transcript Segments


1.		Think About Selling From Day One

2.		Take Charge Of Your Exit

3.		Hire Experts

4.		Calculate Your EBITDA

5.		Build Goodwill

6.		Play Hardball

7.		Provide Buyers Continuity

8.		Deliver The Numbers

9.		Lean On Your CPA

10.		Know When To Let Go

That was the accepted number that everybody used. The value of the company is based upon a multiple of your EBITA. So in this case, they were willing to pay $18 million for the company. However, there's a big difference between what they paid and the fixed assets. The difference there was divided into two categories. One was the value of the mailing list. And there was no value on the books for the mailing list because you accumulated over many years of running a business.

HATTIE: Exactly.

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