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

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

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). The 1st one for today is the Tangible Book Value (TBV) method.

Valuation 130

Valuation M&A Business IT 130

Lake Country Advisors

AUGUST 8, 2024

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. It’s integral to ensuring that the sale benefits all stakeholders and should be one of your priorities before advertising it to potential buyers. million Year 2: $2 million / (1 + 0.10)^2 = $1.65 million + $1.65 million + $2.25

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

How2Exit

FEBRUARY 23, 2023

Concept 6: Value Assets With DCF (Discounted Cash flow) One of the most important tools in the negotiation process is the discounted cash flow (DCF) method. The equation for the DCF method is CFT divided by T, where CFT equals cash flow in period T, and R equals discount rate.

Business 130

Business Negotiation DCF Acquisitions 130

Francine Way

JULY 17, 2017

We proceeded as follow: New Goodwill = Implied Equity Purchase Price - Book Value of Equity. Capex as % of Sales = - Capital Expenditures / Revenue. Proceeds at Sale = Equity to Sponsor calculated earlier. Total Cash Flows to Sponsor = Initial Equity Investment + Dividends + Proceeds at Sale.

Valuation 130

Valuation M&A Debt Book-building 130

Sun Acquisitions

OCTOBER 13, 2023

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.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation Mergers Acquisitions 59

Sun Acquisitions

NOVEMBER 17, 2023

The valuation is based on key financial metrics such as Price-to-Earnings (P/E) ratios, Price-to-Sales (P/S) ratios, or Price-to-Book (P/B) ratios. Discounted Cash Flow (DCF): DCF is a fundamental valuation method that estimates the present value of a company’s future cash flows.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation M&A Mergers 59