M&A Foundations · glossary
Enterprise value is what the whole business is worth, ignoring how it is financed; equity value is what the shares are worth once debt is deducted and cash added. The "bridge" between them — enterprise value, minus net debt, adjusted for working capital — is how a headline valuation becomes the price in the SPA. Chapter 8
Explained in Chapter 8, Valuation: How Businesses Are Priced, of M&A Foundations.
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