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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.

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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?

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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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Operating Lease Accounting

Wall Street Mojo

Operating Lease Accounting Definition Operating Lease Accounting refers to the accounting methodology used for leasing agreements where the lessor retains the ownership of the leased asset. The lessee records rental payments as expenses in the books of accounts.

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Accounting Information System (AIS)

Wall Street Mojo

What Is Accounting Information System? For example, AIS may be a very simple ledger for various accounting, costing, and financial reports like Statement of Profit and Loss, Balance Sheet, etc. Table of contents What Is Accounting Information System?

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M&A Blog #24 - Merger Relative Valuation

Francine Way

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. Working Capital deficit. For the accounting professionals out there, earnings manipulation is a matter of concern. Negative equity balance.

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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.

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