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M&A Blog #22 – valuation (less known valuation methods)

Francine Way

Thus far, we have covered four popular valuation methods in M&A (DCF, Comparable Company, Precedent Transaction, and LBO) and one less known one that is making its way out of the academic realm into the business world (Dividend Discount Method, DDM). The 2nd valuation method for today is the Liquidation Value method.

Valuation 130
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M&A Blog #24 - Merger Relative Valuation

Francine Way

It has been roughly three years since my last blog post at the completion of my fellowship. To pick up where we last left off with valuation, I will cover the topic of a Merger Relative Valuation in this blog post and move on to other non-valuation topics from here. The BoD is very likely to want the comparison.

Valuation 130
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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

The core element of M&A is company valuation. Strategy, due diligence, financing, purchase price, and buyer-seller alignment all revolve around valuation and the enterprise value for the buyer and the seller. Valuation focuses on two questions: 1. It drives prices, ROI, and financing. What is the company worth?

Valuation 130
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M&A Blog #21 – valuation (scenario / sensitivity analysis)

Francine Way

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). So, a good valuation model has to take into account the possibilities of a variable having multiple values along with each value’s probability of occurring.

Valuation 130
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M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

As I mentioned in my last post, Discounted Cash Flow (DCF) is a valuation method that uses free cash flow projections, a discount rate, and a growth rate to find the present value estimate of a potential investment. Essentially, it is a way to value a company based on cash generated from operation, taking into account all major expenses.

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M&A Blog #19 – valuation (Leveraged Buy Out - LBO)

Francine Way

Thus far, we have discussed three common valuation methods that most strategic and financial acquirers use when valuing a company for acquisitions or investments. This current post about Leveraged Buy Out (LBO) is about a valuation method used by a very specific type of financial acquirer: private equity (PE) firms.

Valuation 130
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M&A Blog #11 – buy-side acquisition

Francine Way

Thus far in the last 10 blog posts, we have discussed what M&A is, its success metrics, types of acquirers and value creations, capital structure, debt, and equity. In Blog #02 of the M&A series, we discussed SWOT analysis. Consultants’ valuation, deal-structuring, and deal-financing expertise. Any unions?

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