"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.
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