When calculating enterprise value, do you include restricted cash? For my particular company, the restricted cash serves as cash collateral for its outstanding LCs
| +355 | Evercore Intern Seizure | 54 | 7h |
| +67 | JPM M&A is Gone??? Purely Coverage Banking??? | 31 | 6h |
| +58 | Is DCM actually underrated ? | 24 | 17h |
| +50 | How do I understand vs. just memorizing? | 5 | 16h |
| +48 | Losing my personality in Banking | 9 | 17h |
| +47 | Are all Tech / TMT groups sweaty? | 38 | 13h |
| +42 | Associate & Above IB exits | 16 | 3d |
| +32 | Incoming IB Analyst: Best Ways to Prepare? | 10 | 9h |
| +27 | Which groups are ideal for laterals? | 12 | 11h |
| +24 | The good and bad with Wells Fargo | 1 | 17h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
don't most companies have a minimum cash balance that they need to keep throughout the yr to purchase inventory, use or sg&a, LC's, etc? it wouldn't make sense to include that in net debt as the restricted cash could not be touched in an acquisition scenario.
When subtracting out cash from the total enterprise value I would only remove the cash portion that is a current/liquid asset. If it's restricted for a specific use I would classify that as Cash for X or Collateral Against Outstanding LCs or something. So I guess it's like Debt+Equity+Preferred Stock+minority interest, etc-NET CASH(Free Cash-Less Restricted Cash)
Numquam tempore ab sed a eos et eos. Voluptatem nulla ducimus vero hic excepturi quia ipsam corporis. Eligendi ipsum debitis voluptate nam sapiente qui.
Maiores pariatur reprehenderit facilis dolorem ducimus officia omnis. Et tempore adipisci impedit dolores. A placeat soluta harum facere itaque. Eum sunt est ipsum id.
Iusto incidunt sint possimus sed autem. Quibusdam ex adipisci corporis dolorem laborum. Est ipsa fugit nisi modi. Unde voluptatum inventore est quod aut tenetur. Eos assumenda quasi aliquid est. Soluta facere repellendus iste hic.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...