Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

EBIT

Definition

A measurement of the operating profit of a company. It stands for earnings before interest and taxes.

See Also

EBITDA, net income, SDE.

Tips

E = Earnings, B = Before, I = Interest, T = Taxes.

Related Resources

EBITDA | Definition, Formula & Example – A Complete Guide

Seller’s Discretionary Earnings (SDE) | Definition & Examples

Should I use SDE or EBITDA to value a business?