Normalized EBITDA is key for business valuation, sector benchmarking and ensuring transparency in M&A transactions. Unlike traditional EBITDA, which is an indicator that measures operating results before financial expenses, tax burden, depreciation, and amortization, normalized EBITDA eliminates extraordinary, non-recurring, or non-operating items, thereby providing a more accurate view of the company’s real capacity.
This indicator is particularly useful for estimating a company’s real value and comparing its performance with other companies in the market, as it serves as a benchmark for applying EBITDA multiples in transactions, mergers and acquisitions.
From Allyon ETL’s Financial Consulting department, we have prepared a note explaining these aspects in greater detail. Our team will be delighted to assist you and support you throughout the entire process.