Glossary

With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.

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Earnings before Taxes

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Category: Business Valuation

Definition:

Earnings before tax (EBT) is a measure of financial performance. It reveals a company’s earnings before taxes are deducted and is calculated by subtracting all expenses excluding taxes from revenue. It appears as a line item in the income statement. In the context of mergers and acquisitions it can provide several benefits, as it offers insights into a company’s financial performance before accounting for tax implications.