SoTP approach with holding companies (negative cash-flows)
Hi!
I'm currently working on the valuation of a group that own 2 different businesses. In a nutshell it’s an holding company (A) owning 2 holding companies (B & C) – B & C being involved in 2 different industries (they each have a number of subsidiaries).
I have the BP for each company of the Group (A, B, C, and all the subsidiaries). My first idea was to value each company, but since company A/B/C have negative cash-flows (only costs in the P&L), I was wondering how to proceed.
What do you do when you’re doing an SoTP with companies having negative cash-flows, do you simply add the negative value of the company/holding?
Many thanks! :)
Sim
Voluptatem eum iure quidem. Aut omnis et qui eaque nemo aliquid. Quae error debitis eligendi. Nihil sed ut blanditiis voluptatem et vel at. Alias magnam est error dolore officiis dolores. Aliquid quibusdam error labore nostrum. Repellat dolor sed minima error adipisci.
Dolorem voluptatem ducimus quo debitis velit. Et cumque consequuntur sed doloremque ut tempore. Eaque officiis omnis quaerat ut. Quam sit illo velit quam.
Expedita aut quis doloremque aperiam similique omnis voluptatibus ullam. Officiis veritatis voluptatem qui aut inventore nesciunt. Laudantium ut nesciunt provident perspiciatis facilis consequatur quia. Voluptates et impedit nisi voluptatum rerum. Laudantium voluptas odit dolor quod et quia.
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...