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M&A Blog #17 – valuation (Comparable Company)

Francine Way

While different valuation professionals differ on which multiples to use based on the target’s industry, and so on; a few multiples have became analysts favorites: TEV/Revenue, TEV/EBITDA, and TEV/Tangible Book Value. Tangible Book Value = Book Value of Equity - Goodwill. TEV stands for Total Enterprise Value.

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Methods and Examples on How to Value a Company

Lake Country Advisors

Market Capitalization Market capitalization is one of the simplest and most commonly used methods for valuing a publicly traded company. Example Scenario: Suppose XYZ Corp is a publicly traded technology company with 50 million shares outstanding, and the current share price is $20.

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7 Things I Learned from Lana Coronado - Author and Chair for MBH who have acquired 25 companies in less than 2 years.

How2Exit

Lana also co-authored a book about investing in real businesses. The book covers the steps that can be taken to make a business worth buying, such as understanding the market, preparing for the sale, and understanding the legal aspects of the transaction. Overall, investing in real businesses can be a rewarding and lucrative endeavor.

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Q1 Reflections: Passive Candidates, Timelines & More

H. Friedman Search

This has become especially prevalent in publicly traded companies like commercial banks for instance rather than the smaller firms and investment banks. You can find our listing in the “supplier and services” section of the Red Book under the title of “executive recruiting.” The good news? Friedman Search LLC.

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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

This approach relies on analyzing the market value of comparable publicly traded companies, known as guideline companies or multiples. 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.

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Lower 2021 thresholds announced for merger reviews under Competition Act and Investment Canada Act

Deal Law Wire

How enterprise value will be determined will depend on the nature of the transaction: Publicly traded entity (acquisition of shares): Market capitalization plus total liabilities (excluding operating liabilities), minus cash and cash equivalents. The threshold for an indirect acquisition of control is C$50 million in asset value.

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Are You Doing the Right Training to Win the K-12 Instructional Materials Race?

Tyton Partners

Only McGraw-Hill retained its name, but it too had found itself subject to a split back in 2013, when it was sold out of publicly traded McGraw-Hill Companies to a private equity firm. In February 2019 Pearson divested its K-12 textbook business for $25 million in cash and a $225 million vendor note. Pearson then became Savvas Learning.

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