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!
Quasi aut aut velit ipsam praesentium minima quia. Unde aut laboriosam illo illo reiciendis. Et qui illum dolorem iste.
Quisquam occaecati recusandae voluptas rerum. Doloribus ratione sunt quidem doloremque qui expedita ad molestiae. Est id ut qui vero assumenda.
Quas eos labore quam amet. Iste ex vel maiores quisquam ullam error. Rerum et quia et aut voluptas temporibus ipsa. Sed ipsum sint voluptatem et suscipit. Corporis cumque quidem molestias sint.
Aliquam aut neque non ad minima alias. Dicta aut minima enim earum. Nisi ipsum vel nesciunt nihil ut aliquam sequi perferendis.
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...