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Factors impacting Perpetual Growth Rate in a DCF

Wizenius

One critical aspect is determining the appropriate growth rate for the perpetual growth phase in a Discounted Cash Flow (DCF) model. For instance: - During the global financial crisis of 2008, several industries experienced a substantial downturn due to reduced consumer spending and tightened credit conditions.

DCF 52
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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

Others would counter that growth equity’s rapid ascent was mostly due to the easy money that persisted between 2008 and 2021. Financial Modeling: Like private equity, 3-statement models are common, as are valuations and DCF models , but LBO models are less common since not all deals use debt. Many hedge funds also joined the party.

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Investment Banking in Dubai: The New York of the Middle East?

Mergers and Inquisitions

This happened back in 2008 and, more recently, in 2022, when deal activity fell almost everywhere except for the Middle East. For example, total deal activity held up better than in other places in 2008, but it fell substantially in 2009, following the rest of the world.