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

Mergers and Inquisitions

MAY 29, 2024

With the craze over renewable energy and infrastructure over the past few years, we’ve received more and more questions about Project Finance vs. Corporate Finance. Many of these assets last for decades , have stable/predictable cash flows , use substantial Debt (50 – 60%+ of the total price), and use sized and sculpted Debt.

Corporate Finance 59

Corporate Finance Financial Modeling Financial Models Finance 59

Francine Way

JULY 17, 2017

While this method is not usually used by strategic acquirers (corporations) to justify their offers, savvy strategic acquirers do perform the analysis to figure out what a PE competitor in an auction environment would be willing to pay for a target. Building a historical 3-statement model and a debt-interest schedule.

Valuation 130

Valuation M&A Debt Book-building 130

Mergers and Inquisitions

MARCH 13, 2024

Debt financing is much more common, and the GE firm is often the first institutional investor. Many of these firms use debt to fund deals, and they complete bolt-on acquisitions for portfolio companies. They do not use debt since they only make minority-stake investments. Why Did Growth Equity Get So Popular? based firms.

Private Equity 105

Private Equity Equities Capital Portfolio 105

Mergers and Inquisitions

OCTOBER 18, 2023

or debt offerings (investment-grade or high-yield bonds). Specifically, private equity is not feasible from most ECM or DCM teams, hedge funds are also challenging, venture capital is a stretch, and you won’t have the right skills for corporate development. Should You Accept a Capital Markets Internship or Job Offer?

Investment Banking 59

Investment Banking Capital Market Recruitment Capital 59

Mergers and Inquisitions

JANUARY 10, 2024

By contrast, investment banking is more about advising companies on transactions such as M&A deals , equity and debt deals , and restructuring. You will very rarely get exposed to the type of financial modeling that bankers complete: 3-statement models , DCF models , M&A models , LBO models , and so on.

Investment Banking 59

Investment Banking Management Bank Banking 59

Devensoft

AUGUST 22, 2023

As opposed to merely focusing on the market capitalization, which only accounts for the company’s equity value, the Enterprise Value Calculator considers the company’s debt, cash, and other financial liabilities. Discount Rates Discount rates are used in the DCF method to determine the present value of future cash flows.

Valuation 52

Valuation M&A Utilities Mergers and Acquisitions 52