Debt-like items are liabilities that reduce seller proceeds in M&A transactions. Learn how enterprise value adjustments, net debt, and working capital determine the equity value paid at closing.
Do buyers really use EBITDA multiples? Yes—but only as shorthand. This guide explains how buyers actually value companies, what multiples buyers pay, and how private equity and strategic acquirers price risk in real transactions.
Wondering how much your business is worth? Learn how buyers estimate value using EBITDA or SDE, market multiples, and the EV-to-equity bridge that determines seller proceeds.
Enterprise value vs equity value explained with formulas, the EV-to-equity bridge, and a practical example used in real middle-market M&A transactions.
Net debt in M&A is the deal-defined bridge from enterprise value to equity proceeds. This guide explains the net debt formula, debt-like vs cash-like items, deferred revenue and lease nuances (ASC 842), and how LOI definitions and closing statements affect seller outcomes in middle-market transactions.
A practical guide to working capital pegs in M&A—what belongs in operating NWC, how to set a seasonally aware peg, and the purchase price adjustment mechanics at close. Learn where sellers lose value, which “debt-like” items to reclassify, and how QoE ties peg policy to normalized EBITDA.