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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. The major steps of DCF are: Identify extraordinary, unusual, non-recurring items from the target’s 10-Ks and 10-Qs.

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The 11 Concepts And Ideas I Learned From Interviewing ChatGPT On How To Buy A Business.

How2Exit

You must be willing to explore different sources for deals, build relationships within your industry or niche, and reach out directly to business owners. Empathy involves understanding the other party’s perspective, building rapport, and using effective communication. Using effective communication is also important.

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Mastering M&A Valuations: The Comprehensive Guide to Utilizing the Enterprise Value Calculator

Devensoft

Financial Modeling Software: Advanced financial modeling software, like Microsoft Excel with specialized add-ins or dedicated financial modeling tools, allows for complex enterprise value calculations. This includes financial statements such as the income statement, balance sheet, and cash flow statement.

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

RKJ Partners

During preliminary due diligence, the view of valuation is often heavily contingent on the financial information provided by the seller. Sellers are often hesitant to provide in-depth, detailed financial statements without first feeling comfortable that the buyer can successfully close a transaction.

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