Record Identity and Evidence Cut
Start with a blank live record or load the illustrative example. All substantive input values are required for analysis; blank is unknown and zero is an asserted fact.
USD formatting is used for monetary results. The source register below records the actual input provenance. Dashboards require manual reconciliation; they do not pull data from other files.
How to Use This Tool
Complete the record identity and read the operating procedure below. Enter accepted numerical assumptions and their source register, then calculate and review detailed warnings. Use Load Example only for illustration. Record unresolved conditions and the actual authorized next action; export the full JSON record after review. Cross-folder results are transferred manually.
Complete the record identity, read the document-specific operating procedure, enter accepted assumptions and their source register, then calculate. Review detailed warnings, carry source holds and record the actual authorized next action. Use Load Example only for illustration; export the complete JSON record after review.
1. Assumptions & Inputs
2. Executive Results
3. Analysis & Decision Signals
| Measure / Option | Amount / Result | Standard / Comparison | Headroom / Difference | Decision Meaning | Signal |
|---|
4. Valuation Method Reconciliation
| Method | Basis / Earnings Metric | Multiple Applied | Resulting Enterprise Value | Confidence / Notes |
|---|---|---|---|---|
| EBITDA Multiple Method | ||||
| SDE Multiple Method | ||||
| Revenue Multiple Method | ||||
| Discounted Cash Flow Cross-Check | ||||
| Comparable Transaction Cross-Check | ||||
| Asset-Based Floor Value |
5. Required Controls & Validation
6. Decision Triggers & Management Response
7. Action Register
| Priority | Action | Expected Value / Deal Effect | Owner | Due Date | Status / Evidence |
|---|---|---|---|---|---|
| 1 | |||||
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 |
8. Executive Review & Approval
Input Source and Reconciliation Register
For every numerical input or rating, record its source and accepted version, basis or calculation, preparer, reviewer and verification date. Include population, period, currency and accounting basis where relevant. Blank source cells identify unfinished evidence work.
| Input / rating | Source / accepted version | Basis / reconciliation and limitations | Reviewer / date |
|---|---|---|---|
| Normalized EBITDA (TTM) | |||
| EBITDA Multiple — Low | |||
| EBITDA Multiple — High | |||
| Industry Benchmark Multiple | |||
| Seller Discretionary Earnings (TTM) | |||
| SDE Multiple | |||
| Revenue (TTM) | |||
| Revenue Multiple (if applicable) | |||
| Net Debt (Total Debt − Cash) | |||
| Non-Operating Adjustments (net) |
Reconciliation and Unresolved Stop Conditions
Any edited entry clears the reconciliation marker. Mark it again after review. A manual stop raises the overall signal to red; it does not enforce an actual transaction restriction. Approval and signatures remain in the organization’s controlled decision records.
Operating Procedure and Working Example
Scope and source preparation
Reconcile positive accepted EBITDA and ordered low/high multiples. Support the benchmark separately with observation date, sample and denominator basis. Carry optional SDE and revenue cross-checks only where converted to the same operating enterprise-value perimeter; zero multiple excludes them with a recorded rationale. Finance validates signed net debt and signed nonoperating adjustments against a bridge schedule showing which cash, real estate, investments and liabilities are already included.
Detailed execution and calculation basis
The primary enterprise range is EBITDA times low and high multiples; its midpoint is the mean of the two endpoints. Equity midpoint subtracts signed net debt and adds signed nonoperating adjustments. The benchmark value and optional cross-checks are comparisons, not automatic additions. Method dispersion uses only active comparable methods. Neither enterprise value nor the equity proxy includes an automatic working-capital true-up, fees, integration cost or financing structure.
Controls exceptions and operating handoff
The reviewer checks range ordering, double counting of excess cash and nonoperating assets, lease accounting and assumed liabilities. A debt-heavy bridge can produce negative equity without invalidating the arithmetic; record the implications for the actual transaction and required creditor agreement. Reconcile cross-method differences into 08.23 before handoff. Preserve both the operating valuation and complete equity bridge so negotiation does not accidentally subtract debt twice.
Evidence acceptance and review cadence
Retain original source and accepted version, valuation date, included entities, currency, input derivation, comparable population, actual test performed and reviewer finding. Distinguish seller claims, analyst scenarios and accepted evidence. Review at the adopted deal cadence and after material financial, market, structure or funding changes. Record unresolved issue, affected commitment, owner, competent review route, deadline and closure evidence. Close only after the cited remedy is accepted; a calculator result or typed approval field does not execute a transaction.
Working example
EBITDA $1.25m at 4–5.5x gives $5m–$6.875m operating enterprise value and $5.9375m midpoint. Less $900k net debt plus $100k separately excluded nonoperating assets gives $5.1375m equity midpoint. Already included real estate must not be added again.