A software heuristic: a company's <em>revenue growth rate plus profit margin should sum to at least 40%</em> — balancing growth against burn.
The premium a buyer pays above the fair value of a target's identifiable net assets — booked as an asset and tested for <em>impairment</em>, not amortized.
EBITDA recast to a sustainable run-rate by adding back <em>one-time, non-recurring, and owner-specific items</em> — the EBITDA most deals are priced on.
Enterprise value divided by <em>annual recurring revenue</em> — the headline multiple for subscription software, where ARR is the durable revenue base.
The post-close exercise of <em>spreading the purchase price</em> across a target's assets and liabilities at fair value — with the residual booked as goodwill.
Enterprise value divided by EBITDA — the headline multiple in private markets, expressing <em>price as a count of operating-earnings years</em>.