RE:This is not rocket science people"Investel pays $2.3M for SCG's telecom assets (cash, A/R and inventory) and takes on $4.3M of the debt. SCG calls that a $6.7M valuation which technically it is."
Technically it is, but practically the transaction is about Selectcore selling a business unit for the assumption of its $4.3 million in liabilities. The $2.3 million is Selectcores anyway and would be cash in a short period of time so that to me that is like exchanging 20 nickels payable in 60 days for $1 today. In my mind that is a wash and should not be represented as part of the value of the business unit sale.