If I want to buy a shop
I want to buy a shop :
of the shop = 100,000€
Debt of the shop : 1,000,000€
Cash = 0
If we take a Multiple of 15 : 15 x EBITDA = 1,500,000€. This is the enterprise value right ?
But then, what do I have to pay to buy the shop?
1,500,000 - 1,000,000 = 500,000€ right ?