In the transaction detail sheet, how is income statement data for less than a full year treated?
A. If interim income statement data represents a period of six to 11 months, the data is included in the detail sheet and annualized to derive the amount to use in the denominator for income statement multiples, unless the industry is considered to be very seasonal in nature. If the interim period is from three to six months, the data may or may not be included, depending on the company and the nature of its operations. Interim data for less than three months is not presented or used. The interim data is presented in this manner because we believe transactions are completed by buyers after considering the historical financial information and the most recent interim financial information. Further, any sophisticated buyers would require access to interim financial information before finalizing a transaction, especially if the interim period is six or more months after the most recent financial statements. Finally, using annualized interim financial information is similar to using project
