2 min read. You often hear a company was sold for x times EBITDA. So, what is EBITDA and how is it used to value a business? EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. EBITDA is often used to determine a company’s value and the purchase price in a business acquisition transaction. A business can be valued by applying a multiple to its maintainable EBITDA. EBITDA is a preferred metric by many valuation and M&A professionals because it gives a more standardized view of the operating profitability of a business in comparison to similar businesses in the […]
business acquisition
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