M&A & Valuation Glossary

Plain-English explanations of the terms business owners meet across valuation, financing and a company sale. Browse hundreds of definitions across valuation, deal process, legal and finance.

• EBITDA — Earnings Before Interest, Tax, Depreciation and Amortisation
• EV/EBITDA — Enterprise Value to EBITDA multiple
• LOI — Letter of Intent, the preliminary deal agreement
• NDA — Non-Disclosure Agreement protecting confidential information
• Due diligence — the buyer's verification of a seller's disclosures
• DCF — Discounted Cash Flow valuation method