peterareed

Another item to consider when thinking about whether or not to include balance sheet cash is the amount that is needed for bonding capacity. Many of the jobs require a bond(s), and many of the insurance companies who provide the bond effectively need some amount of cash on the balance sheet. In this circumstance, I would argue that the amount required by the bonding company is not "excess cash" and therefore should not be deducted from the calculation of Enterprise Value.