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.
Construction and Engineeing Firms
in General Discussion
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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.