Decide what belongs in net debt
Classify potential debt-like and cash-like items by economic obligation and deal mechanism.
EV to equity The buyer has agreed enterprise value, but the balance sheet contains leases, sale bonuses, trapped cash, tax liabilities, and old payables. A wrong classification can transfer millions of value at closing. Mechanism map Economic obligation x double-count test Classify each item by who benefits, who must fund it, and whether another mechanism already captures it. Everything liability-like is debt Creates double counts and legal fights. Each item has a deal-mechanism home and a written rationale. Debt-like classification should capture buyer-assumed value leakage without double counting normal operating liabilities. 01 Bonus 02 Cash 03 Try Sale bonus First…
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