Multiples / Math

Question 1

5 Years, 2X Multiple

Answer 1

15%

Question 2

5 Years, 3X Multiple

Answer 2

25%

Question 3

5 Years, 4X Multiple

Answer 3

32%

Question 4

5 Years, 5X Multiple

Answer 4

38%

Question 5

1 Year, 2X Multiple

Answer 5

100%

Question 6

2 Year, 2X Multiple

Answer 6

41%

Question 7

3 Year, 2X Multiple

Answer 7

26%

Question 8

4 Year, 2X Multiple

Answer 8

19%

Question 9

1 Year, 3X Multiple

Answer 9

200%

Question 10

2 Year, 3X Multiple

Answer 10

73%

Question 11

3 Year, 3X Multiple

Answer 11

44%

Question 12

4 Year, 3X Multiple

Answer 12

32%

Question 13

Rule of 72, 1 Year to double

Answer 13

72%

Question 14

Rule of 72, 2 Years to double

Answer 14

36%

Question 15

Rule of 72, 3 Years to double

Answer 15

24%

Question 16

Rule of 72, 4 Years to double

Answer 16

18%

Question 17

Rule of 72, 5 Years to double

Answer 17

14%

Question 18

Rule of 72, 6 Years to double

Answer 18

12%

Question 19

AR Days

Answer 19

AR/Sales * 365

Question 20

Inventory Days

Answer 20

Inventory/COGS * 365

Question 21

AP Days

Answer 21

AP/COGS * 365

Question 22

Other Current Assets

Answer 22

% of Sales

Question 23

Capex

Answer 23

% of Sales, use management if available

Question 24

Depcreciation

Answer 24

% of Capex

Question 25

Other LT Assets / Liabilities

Answer 25

Flatlined

Question 26

Accrued Expenses

Answer 26

% of COGS

Question 27

Other Current Liabilities

Answer 27

% of COGS

Question 28

Existing Debt

Answer 28

Flatlined

Question 29

Goodwill Calculation (Purchase Accounting)

Answer 29

Purchase Equity
Less: Book Value
= Excess Purchase Price
Plus: Fees
= Goodwill