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.
Consectetur culpa qui qui dolore. Assumenda quidem perspiciatis molestias dolorem voluptatum. Nulla fugiat accusamus dolorem voluptatibus vero sed. Cum sed libero voluptatem odit non quod. Fuga esse eum consequuntur at saepe. Aut impedit veritatis modi rerum reiciendis corporis. Quas officia est incidunt nam in optio iusto.
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...