Dear search community,
I'm currently negotiating the company value for a business that received substantial government subsidies as Covid-relieve measure which boosted EBITDA.
I'm wondering whether this subsidy needs to be adjusted for in the EBITDA-baseline? You could argue that this is clearly non-operational. At the same time, the loss in revenue caused by the lockdowns was also an outside-effect. Any experience or thoughts on how to handle this?
Thanks a lot in advance,
Philipp
Valuation of one-off government subsidies during Covid-19

by a searcher from INSEAD
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