The private investment world has skewed what profitability really means

I would argue 99.9% of my clients operate on “adjusted EBITDA” for one reason or another. Now, I do work almost exclusively in the private equity portfolio company world where companies have clear ROI-driven objectives from ownership and those in charge of governance. Usually, when a company is acquired in the PE/VC context, it no longer exists to be a lifestyle business. Private equity folks aren’t (usually) interested in a “buy and hold forever” strategy. Usually, companies that get acquired by PE are on a 5–7 year hold pattern where an exit at the end for a multiple is the objective.