Closing Cost at Exit
- This entry is not for Seller's closing expenses on sale, nor it is for buyer's closing expenses at the time of buying the business; it is for Buyer's selling expenses when he/she exits the business at the end of the 5-year planning horizon.
- Enter expected closing expenses as a % of Buyer's selling price at the end of the 5-year planning horizon.
BVX considers buyer's selling expenses at exit (Closing Cost at Exit) as part of his ROE calculation. Selling expenses are deducted from the Terminal Value (see Exit EBITDA Multiple) to calculate buyer's ROE. Closing Cost at Exit is entered as a % of the Selling Price (i.e. Terminal Value) at the end of the 5-year planning horizon.
Some users may prefer to exclude selling expenses from buyer's ROE calculation. This can be achieved by entering 0 % (zero) for Closing Cost at Exit.