Blinded by the Price
From Enterprise Value to Net Payment at Closing James Greifzu
Aaron Baral Introduction In the sale of a business, the difference between headline purchase price and net payment to the equityholders can be significant. Seller may have negotiated an attractive multiple to determine enterprise value, but there is often more to calculating the net payment than applying ownership percentages to that enterprise value. The deal may call for a rollover equity stake, or perhaps an ear