Francine Way

JULY 19, 2017

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). So, a good valuation model has to take into account the possibilities of a variable having multiple values along with each value’s probability of occurring. To-date, we have lumped them together.

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Francine Way

JULY 18, 2017

For this valuation post, I wanted to talk about a valuation method that is making its way out of academia and into the real world, a method that is gaining popularity in the world of portfolio management. Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.),

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Valuation M&A DCF Shares 130

Francine Way

JULY 12, 2017

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. Calculate the Equity Value and the per-share Equity Value - this number would serve as the base case share price valuation.

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Discounted Cash Flow Valuation M&A DCF 130

Francine Way

JULY 17, 2017

Thus far, we have discussed three common valuation methods that most strategic and financial acquirers use when valuing a company for acquisitions or investments. This current post about Leveraged Buy Out (LBO) is about a valuation method used by a very specific type of financial acquirer: private equity (PE) firms.

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Francine Way

JULY 7, 2017

Thus far in the last 10 blog posts, we have discussed what M&A is, its success metrics, types of acquirers and value creations, capital structure, debt, and equity. In Blog #02 of the M&A series, we discussed SWOT analysis. Consultants’ valuation, deal-structuring, and deal-financing expertise. Any unions?

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M&A Acquisitions Consulting Capital 130

Francine Way

JULY 9, 2017

After the prospective buyers review the CIM and conduct their own preliminary diligence analyses to determine their level of interest and initial valuation of the sale, they will typically solicit internal support for the acquisition. We have discussed the sell-side of an M&A transaction in the last two blog posts.

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Francine Way

JULY 8, 2017

Peaked market valuations: When market cycle peaks or an industry fully matures, it may be advantageous for shareholders to cash out. Lack of financial / strategic progress: Shareholders’ frustration with the lack of growth of a company’s stock price / dividends / earnings per share / other financial metrics may drive exits.

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JD Supra: Mergers

JUNE 28, 2023

In this blog, we posit that “before” refers to the “bull market” that ended in January 2022, and “after” refers to everything that – happened, is happening, and will happen – next. History is often written by reference to “before” and “after.” By: Foley & Lardner LLP

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Deal Lawyers

JULY 11, 2024

Earnouts are perhaps the most contentious of deal terms, and over the years, disputes about earnout provisions have provided us with a rich source of blog topics. Despite all the problems with them, earnouts continue to be a popular tool for bridging valuation gaps.

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Valuation 124

Sun Acquisitions

OCTOBER 13, 2023

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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Sun Acquisitions

NOVEMBER 17, 2023

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.

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Mergers and Acquisitions Valuation M&A Mergers 59

Sun Acquisitions

SEPTEMBER 30, 2024

As you meticulously evaluate financial statements, assess market conditions, and fine-tune your pitch, it’s crucial not to overlook the less conspicuous elements that can significantly influence your business’s valuation in mergers and acquisitions (M&A).

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Mergers and Acquisitions Valuation Mergers Acquisitions 59

The M&A Lawyer

OCTOBER 26, 2015

He and the Merit Harbor team work with middle-market business owners looking to grow, acquire or sell companies in the $10mm to $100mm valuation range. With recent high company valuations and other general macro-economic factors, investors need to get far more involved with a company in order to expect any type of fast growth.

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Focus Investment Banking

APRIL 7, 2024

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. Impact on Business Valuations: The fluctuation in interest rates not only influences PE activities but also affects how businesses are valued.

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Private Equity Valuation Equities Business 52

Sun Acquisitions

MAY 15, 2023

Here is a beginner’s guide to understanding valuation for family businesses. Identify Your Valuation Goal: Before getting started, you must identify the overall objective you are trying to achieve with this process. Doing research ahead of time will help determine which valuation methods are best suited for your needs.

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Valuation Business M&A Debt 52

OfficeHours

MAY 19, 2023

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. Master valuation, drive decisions, and understand market dynamics.

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Discounted Cash Flow Financial Analysis Accountant DCF 130

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we define and outline the key elements involved in valuing a target company. What is Valuation? Valuation can be simply defined as the process of assigning an estimated dollar amount or range to the worth of an item, good, or service.

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M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

OfficeHours

JUNE 5, 2023

DO NOT let yourself fall victim to such a ploy – instead, follow the tips outlined below to stand out in the interview process: Understanding the Purpose of an LBO As you have likely heard time and time again, knowing WHY you are using a valuation method is just as important as knowing HOW to use a valuation method.

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Private Equity Valuation Equities Debt 147

Focus Investment Banking

MARCH 24, 2024

In the dynamic realm of direct-to-consumer (DTC) businesses, a clear hierarchy emerges in private equity valuations, largely based on the perceived stability, scalability, control over supply chains and customer experiences. The hierarchy in DTC business valuations reflects a balance between risk and reward.

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Private Equity Valuation Equities Business 52

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we define and outline the key elements involved in the process of raising capital. Yet, taking this equity investment means accepting painful ownership dilution due to the low valuations given to companies at this early stage. So, what's the alternative?

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Debt Capital Raising Capital Equities 40

TechCrunch: M&A

JUNE 29, 2023

A widely circulated blog post claiming knowledge of the matter said Wang had been diagnosed with depression, sparking discussion on entrepreneurs’ mental health issues in China’s tech community. With no product, Light Years Beyond had a valuation of $200 million at inception, as noted in one of Wang’s Jike posts.

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Debt Investors Recruitment Food 165

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we outline the eight basic steps involved in the buy side M&A process and related insights to assist in a successful execution. Establish Preliminary Valuation. As investment bankers, RKJ Partners, LLC possesses a breadth of knowledge and experience in advising buyers on business acquisitions.

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RKJ Partners

AUGUST 6, 2017

Careful preparation and advanced planning can significantly increase the likelihood of a successful business sale and have a positive effect on valuation. Independent Valuation. The following are proactive steps a business owner should take prior to beginning the business sale process: Recasting Financial Statements.

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Sale M&A Business Financial Statement 40

Midaxo

SEPTEMBER 28, 2023

In this blog post, we’ll explore four keys to running a successful M&A due diligence and offer some insights for navigating this complex terrain. Valuation is a fundamental aspect of any M&A deal. However, relying solely on financial models and estimates can lead to inaccurate valuations.

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M&A Valuation Mergers and Acquisitions Financial Statement 113

RKJ Partners

AUGUST 6, 2017

In our latest blog installment, we define and outline the key elements involved in the process of raising capital. For those that do, the amount of stock or warrant received is based on the valuation of the company at the time of the investment. Advisors often take additional compensation in the form of stock or warrants.

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Capital Raising Capital Debt Finance 40

Sun Acquisitions

AUGUST 12, 2024

In this blog post, we’ll explore how digital transformation is shaping M&A strategies, revolutionizing due diligence processes, and redefining digital asset valuation. Traditional valuation methods, such as discounted cash flow analysis and comparable company analysis, may not adequately capture the value of digital assets.

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M&A Mergers and Acquisitions Valuation Discounted Cash Flow 59

OfficeHours

JUNE 12, 2023

At the junior level, running the model and valuation analyses will be one of your primary workstreams as a private equity professional. To do so, you can either get experience at your job or supplement it by taking relevant courses or certifications on LBO modeling, valuation techniques, and general investment analysis.

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Private Equity Equities Investment Valuation 147

OfficeHours

OCTOBER 20, 2023

Furthermore, if the portfolio company’s revenue is not able to increase with or outpace the rate at which inflation is rising, its valuation will ultimately be impacted. Visit the OfficeHours Blog and follow us on our social media accounts: Instagram , LinkedIn , YouTube , TikTok , and Twitter for our latest updates.+

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Viking Mergers & Acquisitions

MAY 25, 2023

Find a Dependable Broker Advisor When selling a small business, a good business advisor is your ally from valuation to closing. Understand the Business’s Value A valuation analyzes a business for its financial worth. Read more about our business valuation process in this blog post.)

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Business Broker Mergers and Acquisitions Sale 98

Sun Acquisitions

AUGUST 12, 2022

It can sometimes happen that you’re hit with a lawsuit after you’ve completed a business valuation. This is incredibly inconvenient because, following valuation, most owners will have already worked out a reasonably just price for the business. Issue #2 Anticipation of a lower price offering. When to Sell a Business.

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OfficeHours

FEBRUARY 9, 2024

Given that we were mainly doing sell-sides at the EB, a lot of the analysis work was valuation as well as positioning the company and helping the management team with the presentations. At the EB, we were a lot more thoughtful about the buyers we reached out to and tended to have tighter processes. You’ve got your dream private equity!

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OfficeHours

JULY 18, 2023

In a roll-up strategy, a private equity firm will attempt to consolidate a large number of smaller firms into a single, professionalized company with numerous benefits, including economies of scale and fixed cost leverage, valuation uplift (so-called “multiple arbitrage”), and acquisition expertise, among others.

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Sun Acquisitions

JUNE 15, 2022

Business valuation, according to the Corporate Finance Institute , is the “process of determining the present value of a company or an asset.”. In this post, we’re going to answer why you need to conduct a business valuation, how you can determine your business value, and how to find the best business valuation specialists.

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Business Valuation Mergers and Acquisitions M&A 52

OfficeHours

JUNE 5, 2023

Specific Modeling Courses for Various Industries and Stages of Growth While technical proficiency in financial modeling is essential, industry knowledge plays a crucial role in enhancing the accuracy and effectiveness of valuation.

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RKJ Partners

AUGUST 6, 2017

Situations in which an earnout may apply include: If the price gap between buyer and seller valuation is significant, an earnout can be a reasonable method to bridge this difference based upon actual future results.

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Sun Acquisitions

JULY 29, 2022

Increase the company’s market valuation. billion to $15 billion and raised the company’s market valuation from $14 billion to $400 billion. Secondly, conducting the business valuation will be less challenging. Why would anyone sell off a part of their business anyway? Well, divesting business units can be advantageous.

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Business Profitability Sale Valuation 97

OfficeHours

JULY 11, 2023

If you can really nail valuation questions but struggle with regulatory questions, make sure you can get all the valuation questions right to maximize your points there. Yes, for sure Maybe, depends on the opportunities Probably not Check Out All Our Blog Posts Why Do Consultants Perform Better Than Investment Bankers In PE Interviews?

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