Valuation

Middle Market Definition: A Comprehensive Guide for Finance Practitioners

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While there’s no single definition for middle-market companies that everyone agrees on, we’re generally talking about privately held U.S. operating businesses pulling in ~$10M–$1B in revenue per PitchBook. In dealmaking terms, most private-equity transactions in this segment fall around ~$25M–$1B in enterprise value (EV). Note ranges can vary by industry and region; use revenue for operational scale … Read more

Enterprise Value vs Equity Value: Complete Guide to Business Valuation Metrics

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EV bridge: Equity Value → + net debt → + preferred stock → + NCI → − non-operating assets → (+ leases/debt-like when consistent) → Enterprise Value.

Understanding enterprise value vs equity value separates competent analysts from those who fumble through deal discussions. These two fundamental valuation metrics measure different aspects of company value, yet confusion between them derails countless investment committee presentations and M&A negotiations. Enterprise Value (EV) captures the value of a company’s core operations available to all capital providers. … Read more