Valuation & Finance
Maintainable Earnings
The sustainable earnings base buyers apply their multiple to — sellers should build a documented track record that supports the higher recent year as the baseline, not the trough.
Seller Example
Promoter of a Chennai auto-ancillary supplier with volatile EBITDA (₹4 Cr, ₹9 Cr, ₹5 Cr) negotiates for the current year's confirmed order book, already at a ₹7 Cr run-rate, to be used as the maintainable earnings base instead of a 3-year historical average, defending a higher valuation base.