What is an “EBITDA-based business”?
What is an EBITDA based business? I read somewhere that M&A tends to work on deals with EBITDA-based businesses. I'm trying to understand what this means in comparison to other business types.
Thanks in advance, +1 sb for answers.
believe it means businesses where the income statement drives the balance sheet, ie. “widget” companies, like a retail company for example. Businesses like RE or banks would be the opposite where the balance sheet drives the income statement (your income is driven from your assets, like interest on loans or rental income)
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