Chris Mercer

NOVEMBER 15, 2022

Atticus Frank will present tomorrow and talk about why market multiples differ between and among industries. Travis Harms and I cover the topic of normalizing adjustments in our book, Business Valuation: An Integrated Theory Third Edition , on pages 117-123. Normalized EBITDA is, therefore, $3.0 million, no cash, and no debt.

Business Valuation 52

Business Valuation Normalized Earnings EBITDA Appraisal 52

Viking Mergers

MARCH 24, 2022

SDE is variously referred to as Seller’s Discretionary Cash Flow, Adjusted Cash Flow, Owner Benefit, Recast Earnings, or Normalized Earnings, although Seller’s Discretionary Earnings is the official terminology advocated by the International Business Broker’s Association (IBBA). See notes below for additional information.

EBITDA 130

EBITDA Business Valuation Normalized Earnings Marketability 130

Class VI Partner

NOVEMBER 14, 2022

As a result, debt has become much more expensive for M&A market buyers relying on financing to execute deals. Valuations are falling in line with industry counterparts in the public markets, where depressed trading multiples have limited many strategic acquirers’ ability to pay the multiples common in 2021. What About Structure?

Equity 52

Equity Normalized Earnings Finance EBITDA 52

Class VI Partner

JULY 28, 2021

Adjusted Net Book Value Adjusted Net Book Value is the Book Value of a business that has been adjusted to reflect the current market value of the assets and liabilities of a company. what is the value of an asset as listed on the company’s accounting records), or the fair market value of a specific asset or group of assets.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52