Calendarization (Valuation Date VS. Closing Date)

Hi all,

If the company I am valuing has FYE June 30 and my valuation date is May 30, 2017 with expected deal close date of Aug 30, 2017. Which date should I pick to calendarize: valuation date or expected deal close date?

Thx a million!!!

2 Comments
 

The title of this post gave me PTSD.

Theoretically, you have a few options and it shouldn't really matter which you choose, but best is probably to use the target's FYE (June 30) with a stub period.

So stub period for May 30 2017 - June 30 2017 and then just projected fiscal years.

Honestly though, a month is small enough stub period, you might as well just say fuck it and leave out the stub period and just do fiscal years.

 

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