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The 2023 AICPA Business Valuation Conference and One Thought on Valuation Adjustments

Chris Mercer

Assume further that the appropriate EBITDA multiple is 6x and that the underlying equity discount rate is 14%. Assume that an appropriate holding period premium (to the equity discount rate of 14%) is about 6%. million value with non-normalized earnings is $19.3 Assume a company has reported an EBITDA of $2.0 million.

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What a Difference a Year Can Make

Class VI Partner

Large strategic buyers with strong balance sheets and well-funded private equity groups have gained favor. Conversely, search funds and highly leveraged private equity buyers have become less desirable choices for many sellers, given the heightened risk of financing or capital raises falling through.

Equity 52
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M&A Terms Every Business Owner Should Know

Class VI Partner

Balance Sheet A Balance Sheet is an accounting record for a company that lists a company’s assets, liabilities, and shareholders’ equity. In particular, a Buy-Sell Agreement will typically provide for what happens in the event that one of the shareholders leaves the business and he or she needs to dispose of an equity stake in the business.