SHAREHOLDER EQUITY — VALUING YOUR COMPANY

Generally speaking, the value of a printing company can vary from three to five times EBITDA, depending on current market conditions. In the example in Chart 2, the enterprise value for all firms could vary from $2,601,000 to $4,335,000 and the enterprise value for profit leaders could vary from $4,173,000 to $6,955,000. Assuming an interest rate of 7 percent, then all firms would have interest-bearing debt of approximately $2,250,000 and the profit leaders’ interest-bearing debt would be $1,670,000.