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A comment on Allbirds S-1 IPO. Parent comment

Re:Allbirds S-1 IPO by lumost on Tuesday August 31, 2021 @11:51AM (#28369550)
Isn't EBITDA the number of greater interest to institutional investors such as Private Equity funds?

Interest could be irrationally expensive for a business, taxes could be higher than they should be if the entity is not setup correctly, Amortization represents assets which could be sold off.

These are all things that PE firms can fix/work on to one extent or another with financial engineering. They can't really grow cash flow.

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Re:Allbirds S-1 IPO by mywittyname on Tuesday August 31, 2021 @12:02PM (#28369700)
PE usually look to load up the company they acquire with debt to cover their purchase price. EBITDA gives them a good idea of how much debt the company can service via cashflow.
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