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I don't think this is necessarily a good guideline. I can think of numerous companies that don't care too much about EBITDA and fail to innovate. These companies often fold.
If anything, a company with solid financials is in a much better position to afford innovation, so if a culture of innovation is a priority, I'd look into this aspect as an independent variable.
Interesting. Thanks.
I don’t think so. I’ve been in some where EBIDTA was king, but we spent a lot of money on innovation.