Equity Value

  • Understand Values in M&A: Enterprise Value, Firm Value, and Equity Value

    Understand Values in M&A: Enterprise Value, Firm Value, and Equity Value

    In M&A (Mergers and Acquisitions), the concepts of Enterprise Value (EV), Firm Value, and Equity Value are fundamental metrics that form the basis of negotiations. While these terms should be clearly distinguished, they are often confused or misused in professional settings. Misunderstanding these definitions can lead to flawed decision-making and unnecessary friction with counter-parties and…