BVX can handle start-ups and turnarounds with some modifications. Two adjustments are required:

1)  Enter an artificial positive EBITDA for Year-0, even though the start-up or the turnaround may have negative EBITDA in Year-0.  This is required because BVX algorithm cannot handle negative EBITDA in Year-0.  This change will affect the calculated EBITDA multiple, but it will not impact the value.  The fundamental principle of valuation is that the value depends on the future performance, not on the past. Hence by changing Year-0 EBITDA from negative to a positive, one is changing the EBITDA multiple, but not the value of the business.

The artificial EBITDA should be a reasonably large number because BVX has been programmed to restrict EBITDA multiple to be less than 300.

2)  Use Additional Equity feature if the start-ups or the turnaround is expected to have losses in Year-1 and beyond. permits entry of negative EBITDA margin.  However, with negative EBITDA margin the business needs additional equity infusion in the year of losses. Therefore, you must use the Additional Equity feature for the years with negative margin.  This lets BVX determine the necessary equity infusion during the years with negative margins.