Enterprise Value or Equity Value for IOI terms?

July 31, 2025
by a searcher from Dartmouth College - Tuck School of Business at Dartmouth in Lima, Peru
Hi everyone, what is common rule in IOI (or LOI): to state percentages calculated from Enterprise Value (MVIC) or from Equity Value (MVIC net of debt)? For example, if a company is valued at 100 and carries long term debt of 20, the percentages of cash at closing, seller note, earnouts, and/or rollover are calculated from 100 or 80?
from The University of Chicago in Chicago, IL, USA
from The University of Chicago in Nashville, TN, USA