EBITDA

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. It is a commonly used financial metric that indicates a company’s operating performance by focusing on profitability before the impact of financing decisions, tax structures, and non-cash accounting items. EBITDA is widely used in M&A to compare companies, assess cash flow potential, and determine valuation multiples, as it provides a standardised view of core operational earnings across businesses and industries.

P4i leverages EBITDA analysis to evaluate earnings quality, normalise financials, and support accurate and defensible valuations in M&A transactions.