Accounting & the 3 Statements
What is noncontrolling (minority) interest, why does it exist, and why is it added in the bridge from equity value to enterprise value?
Model answer
When a parent owns >50% but <100% of a subsidiary, it fully consolidates 100% of the sub's financials (all revenue, EBITDA, assets) even though it doesn't own all of it. Noncontrolling interest (NCI)…
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