M&A valuation for going concern: A case study using Samsung electronics’ adjusted EBITDA Multiple

This study analyzes the limitations of EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) Multiple from perspective going concern principle. A new Adjusted that complements is generated applied to real-world cases for comparison. used assess if target company undervalued or overvalued; adjusted determine time taken recover total acquisition cost a in an M&A transaction. Samsung Electronics, South Korea’s leading tech firm, as case analyze financial information between 2017 2021. The result varied with decisions. Investment decisions are made considering assets (debt + capital) be assumed additional investment costs target’s sustainable management. We propose valuation method recovering costs, long-term growth acquired company.