Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) gained prominence within the LBO community during the 1980s because it represented a number that could be used to determine the gross dollars that could be made available to service acquisition debt. At that time, EBITDA was more relevant because the deal criteria of the typical LBO [...]

The price paid for a lawfully acquired business interest is a fait accompli—an accomplished and irreversible fact. The parties have negotiated, had an opportunity to perform their due diligence, reached a meeting of the minds and consideration has changed hands. The transaction is done—the cash register has gone Ka-Ching. While the price paid is a [...]