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

Francine Way

An example of this would be to state COGS and SGA as percentages of Sales Revenues, or to state Depreciation Expense as a percent of Plant, Property, and Equipment (PPE). For simplicity, I prefer to state everything but interest income and expense as percentages of sales revenue.

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Buy Side M&A Blog Series - Vol 7 - Valuing The Target

RKJ Partners

In our latest blog installment, we define and outline the key elements involved in valuing a target company. 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. What is Valuation?

M&A 40
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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

By comparing key financial metrics such as price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, and price-to-book (P/B) ratios, analysts can estimate the target company’s value. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique.

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Understanding the Impact of Interest Rates on Private Equity and Business Valuations

Focus Investment Banking

Discounted Cash Flow (DCF) Analysis: This is the most common valuation method involving discounting future cash flows back to their present value. This can lead to a more cautious approach from PE firms, as higher rates can impact the future cash flows and growth prospects of potential investment targets.