Control transaction multiples, also known as M&A multiples, relate the Market Value of Invested Capital (MVIC) or transaction price to a measure of economic performance or benefit. Common denominators include revenue, various levels of earnings (EBIT, EBITDA), and cash flows. These metrics serve as proxies for the future return-generating capacity of the enterprise. Intangible book value is a balance sheet item derived from historical accounting conventions and does not represent a measure of current or future economic return. Therefore, it is not a standard denominator used in calculating control transaction valuation multiples.

A. Revenues: The MVIC/Revenue multiple is a commonly used metric, particularly for companies in growth phases or with negative earnings.

B. Operating income available to invested capital (EBIT): The MVIC/EBIT multiple is a fundamental and widely accepted valuation metric in M&A transactions.

D. Discretionary earnings: The MVIC/Seller's Discretionary Earnings (SDE) multiple is a standard approach for valuing small, owner-operated businesses.

1. Pratt, S. P. (2008). Valuing a Business: The Analysis and Appraisal of Closely Held Companies (5th ed.). McGraw-Hill. In Chapter 16, "The Market Approach: Guideline Transaction Method," the text discusses common multiples used in transaction analysis. These include multiples of revenues, EBITDA, EBIT, and discretionary earnings (pp. 355-358). The text does not list or endorse a multiple based on intangible book value.

2. Hitchner, J. R. (2017). Financial Valuation: Applications and Models (4th ed.). Wiley. Chapter 6, "The Market Approach—Guideline Publicly Traded Company and Guideline Transaction Methods," details the selection of valuation multiples. The chapter focuses on multiples based on earnings (EBITDA, EBIT, Net Income) and revenue, establishing these as industry standards (pp. 161-165).

3. Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset (3rd ed.). Wiley. In Chapter 17, "Relative Valuation: First Principles," Damodaran outlines the fundamentals of pricing multiples, emphasizing that they should be based on fundamentals like earnings, cash flow, revenue, or book value of equity/capital, not isolated components like intangible book value (pp. 425-430). This text is foundational in many university valuation courses.