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Channel: Wall Street Oasis - Comments for "What counts as "debt" in an enterprise value calculation?"
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Greetings to all! I am

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In reply to What counts as "debt" in an enterprise value calculation?

Greetings to all! I am involved in a transaction where a strategic buyer is purchasing shares in an agricultural production facility. Question: what debt should I deduct here to arrive to Equity Value?

NUMBERS: Enterprise value is 700m
Debt at closing is 500M
However, the old owner will use proceeds and extinguish 200 of the old debt at closing (so he gets zero for his equity).
in this case, should I say that debt at closing is actually 300M?


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