| |
|
| 60. |
|
Pretax
Profit / Loss—Net revenues minus total
expenses. |
| 61. |
|
EBITDA—(Earnings
Before Interest, Taxes, Depreciation, and Amortization)
The agency's profit before interest,
taxes, depreciation and amortization expenses are included. The sum of items
29, 34, 37, 40, 54, 56, and 60. |
| 62. |
|
Pro
Forma Pretax Profit—The agency's profit
if all "discretionary" expenditures made
for the benefit of the
owners, based solely on ownership, were removed and all extraordinary / non-reoccurring
expenses or revenues
were normalized. |
| 63. |
|
Operating
Pre-Tax Profit—Pretax profit minus contingents,
bonus and investment income. |
| 64. |
|
Pro
Forma EBITDA—See items 61 (EBITDA) and
63 (Pro Forma Pretax Profit). |
| 65. |
|
"Rule
of 20" Score—a valuation metric
developed by Reagan Consulting that is the sum of the
agency's pro
forma EBITDA margin times 50% plus the organic revenue growth rate. It provides a quick means of calculating whether or not an agency is creating significant returns for its shareholders. |
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