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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Ratio Analysis
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Ratio analysis in mergers and acquisitions involves evaluating financial metrics to assess the performance, health, and potential risks of target companies. Analysts use various ratios, such as liquidity, profitability, and leverage ratios, to gain insights into a company’s financial condition. These ratios aid in comparing financial data, identifying trends, and making informed decisions during the due diligence process. In M&A, ratio analysis is crucial for understanding the target’s financial position, predicting future performance, and determining the valuation and strategic implications of the transaction. It serves as a quantitative tool to evaluate the overall financial viability and stability of potential acquisitions.
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