Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 06 NOVEMBER 2026

The Most Overlooked Line In The Equity Bridge

Ankura Consulting Group LLC
Explore more from Ankura Consulting Group LLC

Ankura's latest insights explore critical challenges across multiple sectors, from sophisticated Android banking malware targeting financial institutions to the hidden costs of customer service operations. The collection examines healthcare transaction trends, AI implementation pitfalls, and regulatory changes reshaping football finance, while addressing workforce shortages in post-acute care and the complexities of enterprise valuation.

United StatesStrategy
Richard Hitt
Richard Hitt
Neeli Kohan
Neeli Kohan
Pavan Mishra
Pavan Mishra

Choosing the Right Measure of Debt in the Bridge From Enterprise Value to Equity Value

The Question

Moving from enterprise value to equity value appears simple: Value the business, subtract debt, and the remaining value belongs to shareholders. However, the debt figure is often taken directly from the balance sheet without checking whether it reflects fair value. This shortcut may work if there has been neither a change in the credit profile of the company nor a significant change in interest rates. However, if there is a change in the credit profile of the company or change in interest rates, deducting the book value of debt can materially impact the equity value.

2 Measures, 2 Market Participants

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

See more popular content from

Article

The Colorado AI Law You Prepared For Is Gone, And The Rulemaking Comment Window Closes October 26

If your Colorado compliance program is built around impact assessments, it is built for a statute that will never take effect. Senate Bill 24-205, the first comprehensive state AI statute in the country, was scheduled to take effect June 30, 2026. Colorado instead repealed and replaced it with Senate Bill 26-189, signed May 14, 2026, whose principal requirements apply to consequential decisions made on or after January 1, 2027.
United StatesStrategy
Jones Walker LLP
Jones Walker LLP
Article

White House Announces AI Responsibility Accord, Executive Orders, And Super Intelligence Task Force

The Trump Administration has introduced a voluntary regulatory framework for artificial intelligence through the White House Accord on Super Intelligence, signed by six leading tech companies. This new approach emphasizes corporate self-policing with safety audits and board oversight, while simultaneously rebranding government AI terminology and establishing a new interagency coordination force. How will this light-touch regulatory strategy balance innovation with mounting safety concerns as AI capabilities
United StatesStrategy
Crowell & Moring LLP
Crowell & Moring LLP
Article

The Protect College Sports Act Clears The Senate: What Stakeholders Need To Know

The U.S. Senate has passed the Protect College Sports Act by a 77-22 vote, marking the first time Congress has approved comprehensive federal legislation governing college athletics. This sweeping bill establishes a uniform NIL framework, locks in the House v. NCAA revenue-sharing model with caps and retention funds, grants limited antitrust exemptions, and imposes new transfer restrictions, health mandates, and reporting requirements.
United StatesStrategy
Duane Morris LLP
Duane Morris LLP
Article

California SB 574 Would Bar Attorneys From Delegating The Practice Of Law To Generative AI

California Senate Bill 574 proposes a groundbreaking statutory framework that would prohibit attorneys from delegating legal practice to generative artificial intelligence, while imposing disclosure requirements and verification standards across litigation, arbitration, and court filings. The legislation raises fundamental questions about how traditional definitions of "the practice of law" apply to AI-augmented legal work, from document review to contract analysis. If signed by Governor Newsom, California
United StatesStrategy
A&O Shearman
A&O Shearman
Article

Contract Lifecycle Management And Why Legal Teams Need It

Contract lifecycle management has become the most widely adopted legal technology tool in corporate legal departments, addressing fundamental challenges around contract visibility, workflow automation, and risk management. Legal operations expert Jeff Reisner breaks down the CLM landscape, implementation considerations, and why this technology has emerged as the foundational piece most legal teams tackle first when modernizing their operations.
United StatesStrategy
Axiom
Axiom
Article

Ankura CTIX FLASH Update – September 22, 2026

This collection of insights from Ankura explores critical challenges facing multiple industries in 2026, from cybersecurity threats targeting AI assistants to the evolving landscape of freight capacity, cryptocurrency enforcement, and healthcare compliance. The articles examine how organizations navigate regulatory complexity, operational constraints, and emerging risks across financial services, logistics, healthcare, and technology sectors.
United StatesStrategy
Ankura Consulting Group LLC
Ankura Consulting Group LLC
Article

New Research Reveals A Great Divide In Beauty, Health & Wellness, With Executives And Consumers At Odds

A comprehensive study reveals that beauty, health, and wellness has transformed from discretionary luxury into an identity cornerstone, with young men emerging as the fastest-growing demographic and nearly 13,000 medspas now rivaling McDonald's locations across America. The research exposes a critical disconnect between what industry executives believe consumers want and what consumers are actually doing with their time, money, and trust.
United StatesStrategy
AlixPartners Asia LLC
AlixPartners Asia LLC
Article

Following The Funds: What Recent Crypto Enforcement Actions Reveal About Sanctions Evasion And Financial Crime Controls

This collection showcases Ankura's latest insights spanning cryptocurrency enforcement, parcel shipping costs, sanctions compliance, cybersecurity threats, mortgage industry dynamics, healthcare labor challenges, AI governance in financial services, and business transformation strategies. Each piece examines critical operational and regulatory challenges facing organizations across multiple sectors, offering strategic perspectives on navigating complex business environments.
GlobalCorporate/Commercial Law
Ankura Consulting Group LLC
Ankura Consulting Group LLC
Article

Ankura CTIX FLASH Update – September 22, 2026

This collection of insights from Ankura explores critical challenges facing multiple industries in 2026, from cybersecurity threats targeting AI assistants to the evolving landscape of freight capacity, cryptocurrency enforcement, and healthcare compliance. The articles examine how organizations navigate regulatory complexity, operational constraints, and emerging risks across financial services, logistics, healthcare, and technology sectors.
United StatesStrategy
Ankura Consulting Group LLC
Ankura Consulting Group LLC
Article

Ankura CTIX FLASH Update – September 28, 2026

Ankura's latest insights explore critical developments across cybersecurity, supply chain disruption, healthcare compliance, and financial crime enforcement. From AI-driven malware threats and tariff-induced supply chain reconfigurations to evolving cryptocurrency sanctions enforcement and clinical trial participant support regulations, these analyses examine how organizations navigate operational, regulatory, and strategic challenges in an increasingly complex risk landscape.
United StatesStrategy
Ankura Consulting Group LLC
Ankura Consulting Group LLC
Article

Ankura CTIX FLASH Update – September 15, 2026

Ankura's latest insights explore how organizations can transform data and analytics investments into actionable business value through decision intelligence, while addressing critical challenges in AI workforce readiness, cybersecurity threats, and regulatory compliance across multiple industries. The collection examines emerging opportunities in stablecoin regulation, healthcare data optimization, and procurement efficiency.
United StatesStrategy
Ankura Consulting Group LLC
Ankura Consulting Group LLC