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In this Coffee Break episode of Business Refocused, Carey and Lindsay are joined by AgencyFocus team member Lauren Washington to break down how to calculate your agency’s adjusted EBITDA and get a clearer picture of true operating profitability.
They walk through the discretionary and one-time expenses that can distort your P&L, from country club dues and luxury vehicles to severance, rebrands, technology conversions, and other non-recurring costs. They also explain why properly categorizing expenses matters when benchmarking your agency against peers.
Key takeaways include:
- Which discretionary expenses to adjust out of EBITDA
- How to identify one-time and non-recurring expenses
- Why expense categorization matters for agency benchmarking
- How adjusted EBITDA provides a clearer view of profitability
- Why understanding true profitability matters for valuation and financial decisions
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