The right way to set up entry metrics, given transaction fees, expenses, working capital, and cash.
Module Category: M&A and Transaction Adjustments
Key Concept: Value creation models require accurate metrics for entry capital structures. Otherwise they cannot reliably measure an investment’s Unlevered Return and the many value drivers that are downstream from it. The best enterprise valuation starting point is not the purchase price, but the sum of all the equity and debt used to finance a transaction.