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Let’s examine one proprietor (name him Phil) of a business with a $1 million worth and $250,000 of EBITDA (earnings earlier than curiosity, taxes, depreciation and amortization) with one other owner (Sarah) who has a business price $5 million and EBITDA of $1.25 million.. Think of EBITDA as pre-tax earnings after your compensation. As your business grows and also you wish to develop, a small business loan may be vital.
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