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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. Perform sensitivity / scenario analysis using Monte Carlo analysis.

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M&A Blog #15 – valuation (tools and data preparation)

Francine Way

Just as any home appraiser or credit officer does before going through the analytical exercise to produce a score for a home or a borrower, valuation professionals go through several steps of preparation before the actual exercise of producing a number that can be used as a value of a company. A 5- or 10- year historical data is preferable.

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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. Do they have the cash of debt/equity capacity to bid aggressively?

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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

Valuation lies at the heart of every successful M&A transaction, providing a framework to determine the worth of a target company. Valuation techniques in M&A involve a comprehensive assessment of financial, operational, and market factors. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique.

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05-19-2023 Newsletter: TONIGHT ONLY: $99 Buyside Starter Kit

OfficeHours

Learn to interpret anonymous blog critiques as a tool for professional success. A Few Reads to Digest Valuation Simplified: How Discounted Cash Flow Modeling Drives Financial Analysis Harness Discounted Cash Flow (DCF) modeling for financial analysis. Use forum feedback for career advancement.

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

Focus Investment Banking

One aspect that is often talked about and significantly impacts the business landscape is the relationship between interest rates, private equity groups, and business valuations. 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.

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Mergers and Acquisitions Valuation Strategies: Unlocking the Secrets to Successful M&A Transactions

Sun Acquisitions

Valuation is the process of determining the worth of a business, and it plays a pivotal role in M&A transactions. In this blog post, we will dive into different market value methods and strategies used in M&A, shedding light on the secrets to successful M&A transactions.