So it is "worth" that until the deal is done.The first question they ask you when you step into a valuation lecture: "How much is a business worth?"
Students stammer around "Uhh the net present value of all future cash flows" "It's equity?" "The relative value of a comparable business?"
The answer? "A business is worth whatever someone is willing to pay for it."
Once the deal is done what is it worth? You don't know unless somebody else is willing to make an offer. Until then, the most logical valuation is the NPV of future cash flows.
