WELL Health Technologies Corp T.WELL

EBITDA

[bandit69]

This is a good write up regarding EBITDA from someone directly involved in company restructurings and is/was president of the American Bankruptcy Institute.  His knowledge is clearly superior to mine as are his credentials.

It confirms what I said before about someone buying another company based on EBITDA.  As mentioned EBITDA is a gross up number, so one ends up paying a gross'd up purchase price.  He also talks about EBITDAR (Rent) which I have mentioned before.  I have known about companies trying to use rent to form EBITDAR but I did not get that lesson from this article.  I learned that one long ago.

EBITDA

Author:

Ted Gavin

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I am 2018-19 president of the American Bankruptcy Institute and a certified turnaround professional. Before becoming managing director and founding partner of Gavin/Solmonese LLC, I led the Bankruptcy & Fiduciary Services Practice and Creditors Services Group at NHB Advisors, one of the country’s leading turnaround firms, which is now part of Gavin/Solmonese. I frequently write and speak on topics concerning bankruptcy, restructuring and management of distressed companies. Besides a writer, I am a husband, dad to two grown daughters, Tesla driver, Peloton enthusiast, the world's okayest rhythm guitarist, maker of sort-of-passable wine and drinker of excellent wine. Read Less

[bandit69]

Click on EBITDA for the link to the article.

[Capharnaum]

First, I want to start by saying that I generally agree with the author in the sense that cashflow is king. That said, I'll point out that nowhere, in what he says (including different valuation methods), is the mention that net earnings are a good valuation metric at all. That said, I disagree with him in the sense that for the investors that can't read cashflow statements (which is, imo

[bandit69]

Good comments.  I just value the writer's opinion since his qualifications and, more important, his experience, is more advanced than mine.  I guess my point to most everything I say is that companies that use debt/leverage, financings etc to sustain themselves, only last as long as the availability of capital does.  Once the capital window closes, reality hits very fast. 

[Capharnaum]

I tend to invest in sectors that are not capex intensive unless regulated, as the long term sustaining costs are hard to figure out and the changes in commodity prices can hit you hard. My own specific expertise lies in finance in the energy regulated sector, although I also do work on financial viability of various projects (from $5M to upwards of $100M, from the development of a project to M

[bandit69]

Understood. It is all relative in my opinion regardless of the sector. Many companies, energy or otherwise, live on debt and or financings of some type to sustain operations because they don't have retained earnings and cashflow is lacking (i.e. they're not a real business). Imperial oil wasn't in trouble. Suncor wasn't in trouble. CNRL wasn't in trouble. Same sector but they