EBITDA vs. Cash Flow: The hidden costs that can erode value

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is often the go-to metric for evaluating a company's profitability. But here’s the catch: EBITDA is not cash flow. Many businesses look great on paper with strong EBITDA, yet struggle with liquidity, hidden costs, and cash flow shortfalls. If you’re preparing to sell or invest in a company, focusing on EBITDA alone can be a costly mistake. Let’s uncover why.