THE TWO MOST IMPORTANT FINANCIAL RATIOS FOR A SUCCESSFUL SUCCESSION SOLUTION

Excointerim Management Consulting23 Jul, 2021Finance

We at excointerim.com regularly support entrepreneurs with making their firm ?fit for succession?. In doing so, we often find that two key figures are paramount for a successful succession transaction: EBITDA and (operating) cash flow. What is important here is the relationship between these two key figures and sales, and their volatility. In this post, we explain the underlying reasons and implications for successful succession planning.