Enterprise Value Adjustment Multiple for Post-Tax Reform Valuations

Business Valuation UpdateVol. 25 No. 3
March 2019
Daniel R. Van Vleet, ASA
valuation methods & approaches
market approach, guideline multiples, earnings multiples, guideline transaction method, Tax Cuts and Jobs Act

Summary

An intuitive method to adjust enterprise values that were calculated using pretax reform M&A multiples that arguably do not reflect the tax characteristics of the new tax law.