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What a Difference a Year Can Make

Class VI Partner

As a result, debt has become much more expensive for M&A market buyers relying on financing to execute deals. Average EBITDA multiples have consequently dropped in comparison to last year’s frenzied M&A period. As a result, they are relying heavily on buy-side quality of earnings reports and ramping up financial diligence.

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M&A Terms Every Business Owner Should Know

Class VI Partner

EBITDA EBITDA refers to Earnings Before deducting Interest, Taxes, Depreciation, and Amortization costs, and is often used by buyers and sellers as a proxy for operating cash flow in a business (i.e., EBITDA Multiple EBITDA Multiple refers to the multiple of EBITDA used to determine a company’s enterprise value.