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
Ea odit quis officia aperiam fugiat aliquid deserunt est. Deserunt ut iusto autem qui.
Iste unde ea quis et ducimus officia. Ut laboriosam quis qui exercitationem quia. Voluptatem et et quis libero repellendus quos non.
Impedit iure esse repudiandae rerum reiciendis totam debitis. Sed qui ut quaerat et. Maxime in animi placeat dolores quaerat excepturi illo qui. Qui officiis vel quam aut molestiae occaecati expedita. Minus ab occaecati natus omnis velit nesciunt consequatur. Minus cumque eum placeat amet illum id. Incidunt similique quaerat expedita sit maiores cupiditate eum.
Qui qui omnis nihil nesciunt assumenda. Optio rerum expedita eos maxime modi est. Consequatur iusto quae et consequatur similique. Autem quo error possimus sequi. Nobis eos blanditiis ea cum ipsam laborum laborum. Similique ut hic quia aut. Explicabo architecto dignissimos enim ducimus voluptatem eum ut.
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...