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Methods and Examples on How to Value a Company

Lake Country Advisors

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. Adjust for Differences: Make necessary adjustments to account for differences between the target company and the comparables, such as growth rates or profit margins.

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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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Growth Equity Interview Questions: Full List, Answers, and Differences vs. Venture Capital and Private Equity

Mergers and Inquisitions

Plausible Unit Economics – Many growth companies lose money early on, but there must be a path to profitability. That said, you are most likely to get a mix of basic accounting/valuation questions, some IRR math questions , and a few growth/VC-specific questions: Q: Why are liquidation preferences common in growth equity deals?