SALES MULTIPLE definition
SALES MULTIPLE. An industry specific multiplier is attached to the average annual earning over a period of years.
SALES MULTIPLE means a fraction in which the numerator is the sales price paid for any of the Company's common stock or, in the case of a sale of substantially all of the Company's assets, the sales price paid for the Company's assets, and the denominator shall be the book value of such common stock or assets. If there is a merger or consolidation in which stock is used to purchase the common stock or assets of the Company, then a qualified appraiser chosen by the Company shall be hired to determine the fair market value of the acquirer's stock exchanged for the Company's stock or assets. The appraised value shall then be the sales price. Notwithstanding the foregoing, if the stock used to purchase the common stock or assets of the Company is actively traded on a recognized securities exchange, the trade price on the last trading day prior to the merger will be used to determine sales price in lieu of an appraised value.
SALES MULTIPLE means (a) the amount received by the Bank (or the Bank’s shareholders) in exchange for substantially all of the Bank’s assets (or substantially all of the Bank stock) in a Change in Control divided by (b) the Bank’s tangible book value as of the last day of the preceding Plan Year, as calculated by the Bank’s accountants.