EBITDA times a multiple is intended to be the going concern value of the operating assets of the company (often net of working capital related financing), not the value of the shares. To arrive at the value of the shares, we must then deduct non-working capital related debt from the equation.
Our client (the “Company”) is seeking a strategic investor or partner for its Canadian based unmanned aerial vehicle (“UAV”) business. The Company’s UAVs and related services are intended for industrial use, specifically high resolution digital imaging and other data capture from various sensors, in numerous sectors including, but not limited to, mine exploration and production, energy, utilities, forestry, agriculture and defense & public safety.
Range Advisors is soliciting proposals for all or part of the assets and business of the Company, including accounts receivable, inventory of coil tubing, N2 and parts, coil tubing and support units and goodwill. Bids are due April 20, 2015.
A financial model is the most important tool used in the turnaround, restructuring and/or refinancing of a troubled company. Our work with clients almost always requires us to build at least one, sometimes multiple, models.