What is EBITDA? Explaining its Benefits, Calculation Formula, and Relation to M&A
What is EBITDA? Explaining its Benefits, Calculation Formula, and Relation to M&A Understand EBITDA , its benefits, and calculation formula and discover how this key metric can enhance business valuation and decision-making. How many of you have come across the term "EBITDA"? Even for owners managing their companies for many years, the chances of encountering this term in their daily business activities are likely minimal. Even tax professionals such as tax accountants and certified public accountants who primarily focus on audit work rarely use this term in their routine tasks. Although "EBITDA" may not be familiar to many, it is a term that frequently appears in M&A (mergers and acquisitions) practice. Especially for buyers may make investment decisions from the perspective of "How much is the target company's 'EBITDA'?" or "if the price is within X times of 'EBITDA', let's invest." Therefore, to understand th