I am working with a seller on a proprietary deal and we are figuring out a fair multiple of SDE for the valuation. My question is what is included/excluded in that multiple evaluation for an asset sale?

Here is a breakdown:

$500k - SDE

$50k - Note Receivable from Owner
$80k - Note Receivable from other (not confirmed who yet)

$75k - Cash $995k - Fixed Assets $94k - Notes payable on Fixed Assets $12k - On Credit Cards

Let’s say we land on a 3x multiple at $1.5mil. What typically happens with the cash, notes receivable, notes payable, and credit card debit? How does that get split up of included in the $1.5mil and what is excluded? SBA loan will be in play to purchase.

New searcher here, any feedback would be helpful.