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

Francine Way

Access to credible sources of information such as SEC EDGAR database , Treasury.gov , OECD GDP Forecast , Mergent Online, S&P Capital IQ, Hoovers, ValueLine, Yahoo Finance , MarketWatch , and Damodaran Online. Information listed in the DCF analysis: See the items listed under DCF above.

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Methods and Examples on How to Value a Company

Lake Country Advisors

It’s integral to ensuring that the sale benefits all stakeholders and should be one of your priorities before advertising it to potential buyers. It’s a delicate balancing act, as inaccurate valuations have polarizing consequences. However, company valuation isn’t as simple as slapping a price on your business.

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Post 4 - Why does the conventional DCF not work for valuing a start-up/young firm?

Wizenius

The quick fix - Venture Capital Method of valuation for start-ups Previously, as elaborated in my previous posts in this thread, the conventional DCF falls apart when it comes to valuing a start-up/young firm A quick (and a dirty) fix to the above problem is the VC Method where 1) Estimate revenue or earnings in the near future of the start-up (typically (..)

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

Sun Acquisitions

It’s the process of determining the financial worth of a business, helping acquirers and sellers establish a fair price and make informed decisions. It uncovers any hidden risks or opportunities, allowing parties to assess the target company’s financial health. The net asset value represents the company’s worth.

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Venture Capital Interview Questions: What to Expect and How to Prepare

Mergers and Inquisitions

Look around online, and you will quickly discover that most coverage of venture capital interview questions is junk. Categories of Venture Capital Interview Questions I would split VC interview questions into 6 main categories. Venture Capital Interview Questions: Fit / Background Q: Walk me through your resume.

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The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Mergers and Inquisitions

It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF. In other words, you profit based on the company’s dividend s and the potential increases in its stock price over time.