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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Normalized Financial Statements
« Back to Glossary IndexCategory: Business Valuation
In the context of mergers and acquisitions, normalized financial statements refer to financial statements that have been adjusted to reflect a more accurate representation of a company’s financial performance, typically by eliminating irregular or non-recurring items. The goal is to provide a clearer picture of the company’s ongoing, sustainable earning capacity and to facilitate a more accurate valuation during the M&A process. Normalized financial statements play a crucial role in the M&A process by providing a more accurate and consistent representation of a company’s financial performance. These statements contribute to a more informed valuation, risk assessment, and decision-making during the acquisition process.
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