Technical Wording - Query
If 100% cash acquisition of an entity totals £100m, is this the market capitalisation or the Enterprise Value? I presume we would need to add this to net debt to get EV. I've only been given two numbers, acquisition price and pre-overhead EBITDA (£10.1m), and told to discuss my view on deal price!
1) I'm trying to figure out what Enterprise Value is in order to computer EV/EBITDA. Do I just say assuming net debt equates to zero then EV/EBIDA is 10x etc etc
2) Has anyone ever come across the term "pre-overhead EBITDA" - does this just remove fixed costs such as rent/utility bills/salaries?
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