BVX Knowledge Base
BVX Knowledge Base
M&A University


  • This section requires many miscellaneous operating inputs.
  • One of the important inputs is Exit Multiple. Exit Multiple helps determine the terminal value of the business at the end of the 5-year planning horizon.
  • Other inputs are minimum cash reserve requirements, interest on cash balances, permitted dividend distribution, buyer’s acquisition expenses, closing expenses at exit, and depreciation life of old fixed assets and depreciation life of new fixed assets.