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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

While the nuances differentiating EBITDA and adjusted EBITDA might appear subtle, they play a critical role in financial evaluations, particularly during M&A due diligence or when assessing companies with unusual financial events. One-time gains or losses: Expenses or income events that are not recurring and unusual in nature (e.g.,

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M&A Terms Every Business Owner Should Know

Class VI Partner

Buyers and sellers often disagree about what are truly one-time expenses (one of our favorite sayings is: “Life is a series of one-time events”), or what expenses a buyer should not expect to incur going forward (e.g., In this case, an adjustment to the value of these assets is required to determine Adjusted Net Book Value.