GCF Value

JANUARY 20, 2025

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.

Business Valuation 52

Business Valuation Asset-based Approach Appraisal Discounted Cash Flow 52

Cooley M&A

OCTOBER 29, 2018

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.

Compliance 52

Compliance EBITDA Specific Risk Marketability 52

Erik A. Lopez

SEPTEMBER 23, 2015

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.

Net Debt 52

Net Debt EBIT Marketability Specific Risk 52