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The CEO's Guide to Understanding EBITDA

Free Downloadable Guide

EBITDA is one of the most closely examined metrics in the M&A process.

During negotiations in an M&A deal, buyers and sellers look closely at several factors in order to agree on a price that properly captures a company’s value.

EBITDA — which stands for earnings before interest, taxes, depreciation, and amortization — is used as a way to measure company performance. EBITDA indicates whether a business is profitable by revealing the amount of its normal operational earnings.


In this ebook, you’ll learn:

  • How investors use EBITDA
  • Whether EBITDA is the same as cash flow
  • How to use adjusted EBITDA to make your company more attractive to buyers