Ebitda Normalization
Complex EBITDA Normalization with detailed report based on international standards. EBITDA normalization is one of the most important tools of value enhancement advisory services, its goal is to gain a real picture of the income generation capability of a given business. Its task is to adjust all costs, expenditures and revenues that are not expected to occur or arise in the future and thus do not affect the investor and the future of the company.
Typically, economic events found during EBITDA normalization can result from one-time items, accounting errors, or tax optimization solutions. When conducting the examination, M&A World thoroughly reviews the target company's financial statements and general ledgers over a three-year period. Any interesting or unusual findings discovered during the review will prompt follow-up requests for additional documentation such as invoices, tax declarations, and other relevant documents. This comprehensive examination helps ensure a full understanding of the company's financial position.
The result of EBITDA normalization can modify the company's value by significantly increasing or decreasing it, therefore M&A World highly recommends to incorporate the results of the EBITDA Normalization into the company valuation calculation.