Topics related to standalone valuation including fundamental valuation, relative valuation, sum-of-parts and other techniques.
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by private equity » Sat Apr 09, 2011 3:01 am
Hi WST,
Quick Question: should option proceeds be deducted from purchase price to calculate the goodwill?
Many thanks.
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private equity
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by wsthost » Sun Apr 10, 2011 10:30 am
We generally use the treasury method to calculate fully diluted transaction equity value.
SInce that includes the proceeds after receiving option exercise $, but on a "cash-less" basis, the answer is yes.
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wsthost
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