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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

Assessing Acquisition Targets: Private equity firms and corporate acquirers frequently use EV/EBITDA to evaluate potential acquisition targets. Asset write-downs or impairments: A reduction in the book value of assets or goodwill when they are deemed overvalued.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Market-based methods like Comparable Companies Analysis and Precedent Transactions Analysis offer relative measures of value based on market data. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value. This high leverage is why it’s called a “leveraged” buyout.