Start with what the headline figure represents. In a simplified enterprise-to-equity bridge, cash is added and debt deducted. A transaction may also include debt-like items, working-capital adjustments and other negotiated terms. Definitions must come from the proposed deal.
Illustration: enterprise value is not personal proceeds.
An illustrative £1,000,000 enterprise value plus £100,000 cash less £250,000 debt gives £850,000 equity value before other adjustments. If £200,000 of that amount is deferred, the illustrative payment at completion is £650,000 before fees and tax. This is arithmetic, not a valuation or prediction of your transaction.
Show the timing and uncertainty.
Model payments at completion separately from fixed deferred amounts and contingent consideration. Make earn-out assumptions explicit and compare alternative outcomes. Loan notes, retained equity, guarantees and credit risk may need more detailed modelling than a simple cash bridge.
Include the right parties.
Identify the percentage being sold, different share classes and shareholder loans. A company-level equity value cannot always be divided proportionately among holders without considering the rights and transaction terms.
Tax is a separate workstream.
This page’s example is before tax and fees. Personal net proceeds depend on the transaction structure, individual circumstances and applicable rules. Any tax review and transaction advice must be agreed with the appropriate advisers before relying on a net figure.
EXPLORE THE BRIDGE
Change the assumptions. See the difference.
This illustration does not estimate your business value. It shows how four inputs affect the arithmetic, before fees, tax and other adjustments.
YOUR ILLUSTRATIVE SCENARIO
Equity value before other adjustments
£850,000
Cash at completion before fees and tax
£650,000
£1,000,000 + £100,000 − £250,000 − £200,000
Deferred consideration is part of the assumed equity value, not an extra payment. Earn-outs, retained equity and other structures need separate analysis.
BEFORE YOU COMMISSION
A few useful answers.
Does the calculator estimate my business value?+
No. It only adds and subtracts the assumptions you enter. It does not select a valuation multiple, assess the business or recommend transaction terms.
Are the results after tax?+
No. The illustration excludes tax, fees, other adjustments and the time value or credit risk of deferred payments.
Prepare for buyer questions with a practical evidence plan covering earnings, customer relationships, owner dependence, working capital and decision ownership.