Francine Way

JULY 20, 2017

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). This post wraps up our valuation discussion.

Valuation 130

Valuation M&A Business IT 130

Peak Frameworks

JUNE 7, 2023

Net Income - It's the starting point for calculating CFO, but it's based on accrual accounting. Because it's based on actual cash generated rather than accrual accounting, which recognizes revenue and expenses when incurred, not necessarily when cash changes hands. For instance, in 2020, IBM reported solid net income.

Financial Analysis 52

Financial Analysis Discounted Cash Flow DCF Valuation 52

Mergers and Inquisitions

MARCH 13, 2024

Growth equity firms could invest in any industry but tend to be skewed toward technology and TMT , with some exposure to consumer/retail , healthcare , and financial services. 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.

Private Equity 105

Private Equity Equities Capital Portfolio 105

Mergers and Inquisitions

MAY 29, 2024

The skill set in PF/Infra is more specialized because modeling Power Purchase Agreements (PPAs) for a solar plant doesn’t translate that well into valuing a consumer/retail company. In riskier verticals, such as mining, the required DSCR is much higher to account for the added risk of commodity prices.

Corporate Finance 59

Corporate Finance Financial Modeling Financial Models Finance 59

Mergers and Inquisitions

NOVEMBER 1, 2023

Pharmacies are closer to retail companies; nursing facilities are like REITs or real estate; small physicians’ practices are like consulting firms; and HCIT companies could be more like software or IT services firms. Areas like healthcare services and medical devices are fairly generalist and follow standard accounting and valuation.

Private Equity 59

Private Equity Healthcare Equities Middle Market 59

Mergers and Inquisitions

APRIL 19, 2023

Valuation , such as the different multiples used for mining companies and the NAV model in place of the DCF (see below). To value it, we build a standard DCF based on production volumes, CapEx to drive capacity, and assumed steel prices: The valuation multiples are also standard (TEV / Revenue, TEV / EBITDA, and P / E).

Investment Banking 52

Investment Banking Bank Banking Investment 52