Enterprise value - How to handle G&A?
I am wondering if there is a standard or what approaches one would take to value the G&A/overhead for a company. For example, take a company that owns several real estate assets and various companies that are real estate related, plus other entities not real estate related. How do you account for the G&A in the valuation of this company?
Thanks
Hi, If the business you want to value has 2 different businesses (real estate and another business), I would advise you tu use a "Sum of the Part method", ie you value each business separately (therefore no issue with G&A) on an enterprise value (or equity value) basis and then you sum up and maybe apply a "conglomerate discount" to it if you see no synergy between the 2 businesses.
Ferdinand Petra - IB-interview
The response is appreciated, but WSO doesn't allow self-promotion unless you talk to Patrick first. Normally if someone has they make an intro post, so I'm gonna assume you haven't.
I've flagged this for a mod's review, if you'd like to see if Pat is okay with it, please email WallStreetOasis.com>[email protected]. I believe he recently went through a big life event, so maybe @AndyLouis can take a look.
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