EBITDA
Agency glossary · Updated July 2026
Definition
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of an agency’s core operating profitability that strips out financing and accounting effects, and it is the number most often used to value an agency when it is sold.
Net profit + interest + taxes + depreciation + amortizationWhy it matters
Buyers value agencies as a multiple of EBITDA, so it is the number that matters most at exit. A cleaner, higher, more predictable EBITDA raises the sale price.
For a small, debt-free, cash-basis agency, EBITDA is close to net profit. It becomes important as the agency grows or prepares to sell.
Related terms
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