suppose I have an office building that is leased to a corporation for a set period of time (say 10 yr) and the annual rent is constant. the useful lives for the property is 25 yrs. Should I project the 25 yr FCFF cashflow then discount them using appropriate discount rate and not even bother with the terminal values? Since the revenue stream is pretty much constant, I believe the only factor affecting FCFF is gonna be capex + NWC + expenses (employee wages (to keep up with inflation))
Also what happens to all the cash and cash equivalences during an M&A, I suppose the targeted company will distribute them right before the merger so we should not count them toward the company value right?
Lastly, if you guys have any recommended books for M&A especially private M&A to share, I will really appreciate it.
Submitted April 13, 2017 at 06:26AM by not_the_keg http://ift.tt/2pc0AfU
