This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. It’s integral to ensuring that the sale benefits all stakeholders and should be one of your priorities before advertising it to potential buyers.
The difference is that IB is more of an explicit sales job , as deals must close for the bank to earn fees. Equity research at the senior levels does require sales skills, but its more about being a conduit than a closer. consolidation accounting , lease accounting , etc.).
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.
For the purposes of this article, we will focus on valuation from the perspective of a merger and acquisition transaction, and specifically from the viewpoint of a buyer evaluating a business for sale. The advantage of this method is that it takes into account the development of the company, rather than simply the historical financials.
Communication/presentation skills and technical/modeling/deal skills are all quite important, but “sales skills” are also crucial if you’re interviewing at a firm with significant sourcing. If the company executes well, it could easily reach $250 – $300 million in sales over the next 5 years, up from $90 million at the time of the deal.”
We organize all of the trending information in your field so you don't have to. Join 38,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content