BVX Knowledge Base
BVX Knowledge Base
M&A University

Exit Multiple

  • This cell does not affect normal valuations. It impacts business value if Auto exit multiple box is unchecked and if PM is entered in the Exit EBITDA Multiple cell and a high purchase multiple is expected.
  • This cell is disabled whenever a numerical value is entered in the Exit EBITDA Multiple cell. 
  • When exit multiple is entered as PM, BVX has a circular relationship between the purchase multiple and the exit multiple. This can cause the calculations to get out of hand. Max Exit Multiple is the cap that helps prevent such situation.
  • If you increase the cap on exit multiple by changing the value of the Max Exit Multiple, you may increase BVX calculation time.
  • When BVX valuation is impacted by the Max Exit Multiple cap, appropriate cells are flagged on the Overview screen.