Chris Mercer

NOVEMBER 15, 2022

million value with non-normalized earnings is $19.3 Now we can see why it is essential to normalize when valuing minority interests. million using non-normalized EBITDA is not 35%, but 57%, or ((1 – 7.8/18) No informed seller would sell at the lower value implied by using non-normalized EBITDA in the appraisal.

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

Many private equity groups have pointed to their challenges in determining what they consider to be true normalized earnings, given the unique business elements of the last couple of years, both positive and negative. As a result, they are relying heavily on buy-side quality of earnings reports and ramping up financial diligence.

Equity 52

Equity Normalized Earnings Finance EBITDA 52

Class VI Partner

JULY 28, 2021

Book The “Book” in mergers and acquisitions refers to a detailed presentation about a business for sale, including information on its financials, sales, operations, employees, management, and other important information. This “Book” is typically presented to potential buyers to solicit interest in a business for sale.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52