Remove Compliance Remove EBITDA Remove Specific Risk
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How to Value a Limited-Service Restaurant: What Buyers, Sellers, and Appraisers Need to Know

GCF Value

On average, restaurants in this space generate: Annual revenue around $495,000 Seller’s Discretionary Earnings (SDE) of $174,000 EBITDA of $128,000 Which translates to: SDE margin of ~19% EBITDA margin of ~14% These healthy margins—especially compared to full-service restaurants—make LSRs attractive from a lending and acquisition standpoint.

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Startup Valuation: Strategies for Early-Stage Venturees

RNC

Legal & Compliance: Important for issuing stock options, taxation, or regulatory filings. Sensitive to assumptions about growth and risk. Uses multiples like revenue, EBITDA, or users. Equity Negotiation: Defines ownership stake for each funding round. How is Startup Valuation Calculated?

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Business Valuation for Transportation and Warehousing

GCF Value

For valuation purposes, private company transactions typically use two cash flow streams: Sellers Discretionary Earnings (SDE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). A good rule of thumb is to use SDE for earnings up to $500,000 and EBITDA for everything at $500,000 and above.

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MAEjor Ruling: Delaware Court of Chancery Finds Target Suffers Material Adverse Effect and Acquirer Could Back Out of Transaction

Cooley M&A

In reaching these holdings, the court found that: the target’s business experienced a “dramatic, unexpected and company-specific downturn” shortly after signing due in part to “serious and pervasive data integrity problems” that adversely impacted the target’s regulatory compliance.

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Material Adverse Effect Clauses

Erik A. Lopez

First, it qualifies ( i.e. , limits) various seller representations, warranties and covenants , establishing a relatively high threshold for disclosure or compliance relating to risks associated with changes in the target’s business. MAE serves two primary functions in a transaction agreement.

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The AI Agent Valuation Challenge: Why 2025’s Digital Natives Need New Rules

Equidam

The survival rate adjustments used in startup DCF models should reflect both general startup risk and the specific risk of being displaced by foundation model improvements. Telli’s emphasis on blending into existing company operations reduces this risk.

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Startup Valuation: The Ultimate Guide

Equidam

4] , [3] , [5] Unlike mature, publicly listed companies which are easier to compare using multiples of current earnings (like EBITDA) [3] , startups must be valued based on their projected future; moats, margins and the perceived strength of their future growth trajectory. [3] 3] Valuation serves as a critical input for decision-making.