TOP DOWN Definition

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TOP DOWN is a concept of analyzing a subject, such as costs or revenue, starting from the highest level working towards the bottom.

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TIMES FIXED CHARGES EARNED see COVERAGE OF FIXED CHARGES.

STOCK SALE is where the equity price is assumed to include the operating assets and operating liabilities of the sellers business and not include the long term liabilities assumed. The long term liabilities assumed are shown as a separate line item and when added to the equity price results in the deal price. In those transactions indicated as an asset sale the equity price is assumed to include the operating assets.

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