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M&A Terms Every Business Owner Should Know

Class VI Partner

Add-Backs or Adjustments “Add-Backs,” or Adjustments to Earnings, are additions to reported net income figures typically proposed by sellers for one-time expenses (e.g., The higher the degree of risk or unpredictability of a set of future cash flows, the higher the discount rate. unusual litigation, moving, etc.)

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Methods of Business Valuation by Their Profitability

Equilest

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). We can see why it is difficult to establish an automatic transition table between the multiples applied to the various Intermediate Management Balances (except in the particular case without debts or cash presented above).