Focus Investment Banking

APRIL 7, 2024

Cost of Leveraged Buyouts: PE firms often use leveraged buyouts (LBOs) to acquire companies, relying heavily on debt financing. Lower interest rates make this debt cheaper, enabling PE firms to execute more buyouts or bid higher for target companies. This market trend can raise the comparative value of similar businesses.

Private Equity 52

Private Equity Valuation Equities Business 52

Lake Country Advisors

AUGUST 8, 2024

Discounted Cash Flow (DCF) Analysis Discounted Cash Flow (DCF) Analysis is a valuation method that estimates the value of a company based on its projected future cash flows, which are then discounted to their present value. DCF is particularly useful for valuing startups or companies with predictable cash flow patterns.

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

Wizenius

JUNE 25, 2023

The WACC considers the cost of debt and equity financing and reflects the risk associated with the company's capital structure. Adjustments for Negative Cash Flows: Incorporate adjustments in the DCF analysis to account for the negative cash flows in the initial years.

Financial Models 52

Financial Models Financial Modeling Investment Banking DCF Analysis 52

Wizenius

JUNE 5, 2023

Highlight your experience in performing company valuations using various methods, such as discounted cash flow (DCF) analysis, comparable company analysis, or precedent transactions. Valuations: Demonstrate your expertise in valuations, as it is a fundamental skill for investment banking professionals.

Investment Banking 52

Investment Banking Bank Banking Investment 52

Francine Way

JULY 12, 2017

Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). For interest income and expense, I prefer to state them as percentages of the average debt balance of the last two years. It is a good practice to verify the intended debt-vs-total-capital balance post-transaction when possible.

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

Mergers and Inquisitions

NOVEMBER 20, 2024

A: Unlike most PE deals, traditional growth equity deals do not use debt and are for minority stakes in companies, but they often have more “structure” via liquidation preferences and preferred stock. Q: Walk me through one of your deals and explain whether you would have invested in the debt or equity offering or acquired the company.

Private Equity 59

Private Equity Equities Capital Valuation 59

Francine Way

JULY 11, 2017

To perform this analysis, the following are needed: A peer group of 5 or more similar businesses: Can be obtained from sources such as S&P Capital IQ report; or individual research. Information listed in the DCF analysis: See the items listed under DCF above.

Valuation 130

Valuation M&A DCF Financial Statement 130