Sample Equity Bridge
A transparent worked example for a fictional UK SME. Follow the calculation from Enterprise Value through working capital, cash, debt-like items and non-operating assets to indicative Equity Value. All figures are illustrative and reconcile exactly.
Company: Example Engineering Co Ltd (fictional)
Balance sheet date: 31 March 2025
Currency: GBP (£)
Working capital
Current working capital £350,000 less target working capital £200,000 = +£150,000.
Cash & debt
Debt-like items
£1,250,000 debt-like items less £450,000 cash credited = £800,000 net debt.
Non-operating assets
These assets are outside the core operating business and are therefore added separately to Enterprise Value in this worked example.
Minimum operating cash method
½ month of maintainable COGS + 1 month of maintainable admin expenses.
The £150,000 minimum operating cash is retained in the business and is therefore not credited to Equity Value.
Equity bridge
£5,000,000 + £150,000 − £800,000 + £250,000 = £4,600,000
Starting from Enterprise Value of £5.00m, the +£150k working-capital adjustment increases value, £800k of net debt reduces value and £250k of non-operating assets is added, producing indicative Equity Value of £4.60m.
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This is a fictional worked example for illustration only. ValuBridge provides indicative calculation and modelling outputs based on the assumptions and classifications shown. It does not provide a formal valuation, legal, tax, accounting, financial, investment, lending or credit advice, or determine contractual treatment under an SPA or other transaction document. Actual transaction mechanics vary and the relevant transaction documents prevail.