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!
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