The right way set up exit metrics, given the various fund flows among buyers, sellers, lenders, bankers, and other parties.
Module Category: M&A and Transaction Adjustments
Key Concept: Value creation models require accurate metrics for exit capital structures. Otherwise they cannot reliably measure an investment’s Unlevered Return and the many value drivers that are downstream from it. Various errors can result from analysts attempting to force the enterprise valuation at exit to match a transaction’s purchase price.