Hold-period clock
A buyer pays for trailing earnings, not plans. Lay your value creation initiatives against the exit date and see how much of each one will be in the numbers when it counts.
In trailing earnings at exit–
Value at exit–
Planned but not yet in the numbers–Run-rate EBITDA the buyer will discount
Cost of a 6-month slip–Enterprise value lost
The timeline
Assumes each initiative ramps in a straight line and that the buyer credits trailing twelve-month EBITDA. Many buyers give partial credit for run-rate, which this view treats as upside.
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