EBITDA is a business's profit before interest, tax, depreciation and amortisation. It's a rough measure of the cash a business generates from its trading. "Maintainable" EBITDA is the level it can reliably earn year after year, with one-offs stripped out.
Why lenders use it
Acquisition lenders size their loans on maintainable EBITDA, because it shows how much cash the business has to meet repayments. It also lets them compare businesses regardless of how they're financed or taxed.
Why "maintainable" matters
A single strong year doesn't count for much. Lenders look for profits that are:
- steady, or growing consistently, over several years
- not dependent on a one-off, such as a large contract that won't repeat
- real after adjustments, once the owner's personal costs and any new costs under your ownership are accounted for. See How do lenders value a business I want to buy?.
EBITDA isn't cash
A business still has to pay tax, invest in equipment and fund its working capital. Lenders look at how much of the EBITDA turns into cash available to repay the debt.
Last reviewed: 8 October 2026