Post being part of multiple M&As and PE deals, comparable transactions are the major (sometimes only) method used by the acquirers. Its just like you going to buy a house- the preferred method is looking at the most recent real estate transactions on $/sqft in that area to decide what to pay to the seller.
As most businesses are funded by combination of equity/ debt, EV/EBITDA should be used for comparable transactions. EV and EBITDA overcomes capital structure issues and also measures a company using profitability ( EBITDA) indicators.
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