Investment Banking Glossary

Adjusted EBITDA is EBITDA after adding back non-recurring, non-operating, or owner-specific items to reflect normalized earnings used in M&A valuation.

Comparable company analysis is a valuation method that estimates a company's value by applying public-market trading multiples from similar businesses.

A confidential information memorandum is a detailed sell-side marketing document that gives qualified buyers the information needed to evaluate an acquisition opportunity.

A deal teaser is a short, anonymous sell-side document used to generate buyer interest before distributing a CIM. Here is what advisors put in one.

EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and is commonly used as a proxy for operating profitability in M&A.

A pitchbook is a presentation document investment banks prepare to pitch advisory services, present deal analysis, or guide clients through a transaction. It typically includes market overview, comparable company analysis, valuation, and proposed deal process.

Precedent transaction analysis is a valuation method that uses acquisition multiples paid in prior M&A deals involving similar businesses.