- BVX funds buyer's acquisition expenses as part of the transaction analysis and considers them as part of buyer's total investment.
- Enter 0 (zero) if buyer's acquisition expenses are in addition to the purchase price. Otherwise, enter buyer's acquisition expenses as a % of Purchase Price.
BVX considers buyer's acquisition expenses as part of his ROE calculation. Acquisition expenses are also an integral part of the buyer's financing package. This is achieved by entering the acquisition expenses as a % of the Purchase Price.
Some users think that acquisition expenses should be excluded from the Enterprise Value determination, acquisition financing and ROE calculation. This can be achieved in BVX by entering 0 % (zero) for acquisition expenses.
A Button for Acquisition Expenses allows the user to enter acquisition expenses as a fixed amount rather than as a % of Enterprise Value. It achieves two purposes. One, it makes acquisition expenses independent of Enterprise Value and second, it allows the user to enter acquisition expenses in a round number like 100,000 rather than 102,345. This improves presentation and reports.