Final Adjusted EBITDA
• BVX uses Final Adj. EBITDA as EBITDA in all its valuation calculations.
• Adj. EBITDA Margin (%) is Final Adj. EBITDA divided by Sales.
• Final Adj. EBITDA is calculated based on entries in the Income Statement section. It equals EBITDA entered in the EBITDA cell minus the amount entered in Less additional Salaries/Expenses and Less Rent if not deducted.
• Final Adj. EBITDA is the amount of cash available for debt service, reinvestment, taxes and dividends. No other expenses should be payable from Final Adj. EBITDA.
• BVX uses the Final Adj. EBITDA as EBITDA for all its valuation and for its reports. The price multiples in the valuation are based on Final Adj. EBITDA.
• Low margin: BVX flags the user if profit margin is too low. This cell changes its color (to magenta) if its value is less than 2%. BVX will still function.
However, such low margin may not be sufficient to satisfy the cash flow needs of the business (which is determined by growth, balance sheet, and capital
expenditures). In this situation, there is no cash available to satisfy buyer’s return on investment and hence BVX will come up with No Solution.
• Communication Flag: This cell changes its color (to magenta) if its value is less than 2%.