"Business Only" Valuation
hey guys, just want to get your feedback and thoughts on something. We are looking to acquire the company but the owner has mentioned that he is willing to selling the "business" of the company but wants to keep the assets i.e. land, warehouse, and etc. The assets would then be leased back to us in return for a predetermined yield. How in the world do i value the "business" of the company only. Is it just like any other valuations but i get rid of debt obligations related to the PPE, the depreciation and then just add a line item in the income statement for "lease of assets"?
Yes. See how capex will change too.
Maybe more to do depending on the business... I don't know if this is the kind of thing that you'd pay a premium for being asset-light, or would dislike because of terms of lease as it relates to control over premisses and maturity.
Omnis qui saepe sit nihil. Est ut dolorem nemo nostrum sapiente. Nihil nam porro et autem et quas. Et nihil illo quisquam iusto quia qui commodi et.
Qui architecto inventore quis rerum placeat molestias dolorem. Provident aliquam placeat recusandae necessitatibus nam. Sint asperiores nemo quibusdam in et voluptatem nemo. Laudantium eaque tempora illo.
Harum occaecati beatae dolores occaecati. Nihil temporibus corporis aliquid voluptates consectetur. Recusandae corrupti dolores alias est. Ut ut fugiat hic provident exercitationem qui nemo. Consequatur dolores quasi accusamus facere quo voluptas assumenda.
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...