Payments M&A glossary

Multiples

Ratios of enterprise value to a financial metric (revenue, EBITDA, ARR) used to value M&A transactions by comparison.

Also known as

Valuation Multiples · EV/EBITDA · Revenue Multiple

Full definition

Valuation multiples are the shorthand of M&A pricing. The most common is EV/EBITDA (enterprise value over EBITDA), used for profitable businesses. Revenue multiples (EV/Revenue or EV/ARR) are used for higher-growth or unprofitable businesses where revenue is the primary value driver. SaaS multiples often reference EV/ARR. Multiples are not numbers in a vacuum: they vary by sector, size, growth rate, margin, and current buyer demand.

Related terms

EBITDA

Earnings before interest, taxes, depreciation, and amortization. The most common profitability metric used to value M&A transactions.

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