Internal Rate Of Return

An arm’s length transaction is a business deal where the buyers and sellers act independently. Neither party influences the other. Normally, the parties will have no pre-existing relationship, and both parties will have equal access to information relating to the deal.

Hostile business takeovers occur when one business attempts to seize control of another by purchasing controlling equity directly from shareholders. Hostile takeovers can also occur when a company infiltrates the target company’s management class and ushers in an acquisition deal.

EBITDA (earnings before interest, taxes, depreciation, and amortization) is used as an indicator to assess the financial performance of a company. The figure includes interest expenses, taxes, depreciation, and amortization costs in addition to the net income. All the required information to calculate EBITDA will be available from the income statement and balance sheet.