Exit Multiple Method Calculator

Terminal value by exit multiple is calculated as: Terminal Enterprise Value = Exit Multiple × Chosen Metric (for example, EBITDA at exit). Adjustments (net debt, cash, minority interest, pension or other items) are applied after computing the enterprise value to arrive at an approximate equity-level exit value.

When deriving an implied multiple from a target MOIC, the calculator computes the total proceeds required given the purchase price and target multiple, then divides those proceeds by the projected metric to produce the implied exit multiple.

The IRR shown is an annualized approximation using nth-root of MOIC: IRR ≈ (MOIC)^(1/years) − 1. This assumes a single exit cash flow and does not model interim distributions or staged investments.

Accuracy and model hygiene: this tool follows general best-practice controls for numerical reproducibility. Users should validate inputs, perform sensitivity checks, and document assumptions. For operational controls and risk management relating to calculation integrity, consult standards such as NIST guidance for system integrity and change control and ISO standards for quality management; see citations below.

Example 1: Projected EBITDA at exit = 10,000,000; Exit multiple = 8x. Enterprise Value = 80,000,000. If net debt = 5,000,000 and cash = 2,000,000, Adjusted Enterprise Value = 80,000,000 + 5,000,000 − 2,000,000 = 83,000,000.

Example 2: Purchase price = 5,000,000, target MOIC = 3. Required proceeds = 15,000,000. If projected revenue at exit = 10,000,000, implied exit multiple on revenue = 1.5x.