Aerospace EBITDA vs Earnings
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Brent Beshore shares a case study about an aerospace company's earnings structure.
"We looked at an aerospace company a couple years ago that was doing $7 million in EBITDA, but owner earnings was only about $3.5 to $4 million. This was because they had to reinvest in equipment just to keep their market share and stay steady in place. All that cash flow would be rolled back into buying new equipment, buying more inventory, and all the other things that the cash gets sucked into."
Brent Beshore
Founder and CEO of Permanent Equity, specializing in acquiring and operating small businesses. Author of "The Joys of Compounding" and contributor to various business and finance publications.
Featured on business podcasts and in articles on private equity and business strategies.