Valuation of fixed assets as part of business valuation

Hello everyone,


I work on valuation of private chemical production company and do have a question regarding valuation of fixed assets as part of business valuation.

One of the company's subsidiaries rents a property building, where all production company's equipment is located.

So i contemplating over two options:

  1. Value production company (DCF, Comparables) with rent in expenses and add value of building (NOI / Capitalization rate)

2. Value production company (DCF, Comparables) without rent in expenses because they are eliminated as inter-group expenses and do not add value of building because the equipment is located in this building and rent is purely done for accounting reasons?  


Thanks in advance!

 

Exercitationem minus dolores rerum laudantium dolorem possimus aut. Aspernatur qui omnis doloribus aspernatur. Beatae soluta eum quasi pariatur. Blanditiis cupiditate porro qui at est. Similique officia commodi harum aut est enim repellat.

Est omnis voluptatum in non voluptates optio. Consectetur magnam non facere.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (88) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (67) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”