Valuation & Finance
Enterprise Value to Equity Value Bridge
The reconciliation from headline enterprise value to the actual equity cheque paid to sellers, adjusting for net debt, minority interest, and other balance sheet items.
Buyer Example
Buyer agrees to a ₹55 Cr enterprise value for a Baroda specialty chemicals unit, but the EV-to-equity bridge — netting off ₹7 Cr debt, adding back ₹2 Cr excess cash, and deducting a ₹1.5 Cr minority interest in a subsidiary — brings the actual equity consideration payable to promoters down to ₹48.5 Cr, a figure the buyer insists is contractually locked before signing.