Enterprise value - How to handle G&A?

I am wondering if there is a standard or what approaches one would take to value the G&A/overhead for a company. For example, take a company that owns several real estate assets and various companies that are real estate related, plus other entities not real estate related. How do you account for the G&A in the valuation of this company?

Thanks

 

Hi, If the business you want to value has 2 different businesses (real estate and another business), I would advise you tu use a "Sum of the Part method", ie you value each business separately (therefore no issue with G&A) on an enterprise value (or equity value) basis and then you sum up and maybe apply a "conglomerate discount" to it if you see no synergy between the 2 businesses.

Ferdinand Petra - IB-interview

 

The response is appreciated, but WSO doesn't allow self-promotion unless you talk to Patrick first. Normally if someone has they make an intro post, so I'm gonna assume you haven't.

I've flagged this for a mod's review, if you'd like to see if Pat is okay with it, please email WallStreetOasis.com>[email protected]. I believe he recently went through a big life event, so maybe @AndyLouis can take a look.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

Accusamus repellat provident quisquam nostrum. Qui veritatis ut consequatur iste nisi. Est laboriosam sunt error dolor saepe numquam laborum voluptatibus. Sint omnis laboriosam culpa voluptatem ut nihil error. Cum exercitationem maxime exercitationem est quam dolores et. Architecto sit vel provident quis quidem voluptate aliquam.

Rerum minus qui itaque sint. Officia possimus rem minus perferendis.

Quaerat a dicta quis voluptatum aspernatur ut voluptas. Possimus ut doloribus nostrum sequi voluptatem a. Exercitationem voluptates blanditiis molestiae tenetur sed sit officiis. Voluptatem in porro voluptas perspiciatis illum veniam.

Career Advancement Opportunities

April 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 03 97.1%

Overall Employee Satisfaction

April 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

April 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

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $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

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Secyh62's picture
Secyh62
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
Jamoldo's picture
Jamoldo
98.8
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...”