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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. Perform sensitivity / scenario analysis using Monte Carlo analysis.

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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

Valuation lies at the heart of every successful M&A transaction, providing a framework to determine the worth of a target company. Valuation techniques in M&A involve a comprehensive assessment of financial, operational, and market factors. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique.

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Methods and Examples on How to Value a Company

Lake Country Advisors

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. However, company valuation isn’t as simple as slapping a price on your business. It’s a delicate balancing act, as inaccurate valuations have polarizing consequences.

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Delaware Supreme Court Affirms Appraisal Ruling Relying On DCF Analysis To Determine Fair Value

Shearman & Sterling

based on a discounted cash flow analysis ("DCF"). Moreover, the Court of Chancery largely adopted petitioners' analysis, which it found more reliable than that of respondent's expert. SourceHOV Holdings Inc. Manichaean Capital LLC, No. 215, 2020 (Del.

DCF 52
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Understanding the Impact of Interest Rates on Private Equity and Business Valuations

Focus Investment Banking

One aspect that is often talked about and significantly impacts the business landscape is the relationship between interest rates, private equity groups, and business valuations. This can lead to a more cautious approach from PE firms, as higher rates can impact the future cash flows and growth prospects of potential investment targets.

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Delaware Court Of Chancery Uses DCF Analysis To Arrive At Fair Value Below Deal Price, Even Though Deal Process Was Not "Dell Compliant"

Shearman & Sterling

​On February 23, 2018, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery ruled, based on his own discounted cash flow ("DCF") analysis, that the fair value of AOL Inc. ("AOL") was below the deal price paid by Verizon Communications Inc. ("Verizon") to acquire it.

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Delaware Supreme Court Affirms Appraisal Ruling Relying On DCF Analysis To Determine Fair Value

Shearman & Sterling

based on a discounted cash flow analysis ("DCF"). Moreover, the Court of Chancery largely adopted petitioners' analysis, which it found more reliable than that of respondent's expert. SourceHOV Holdings Inc. Manichaean Capital LLC, No. 215, 2020 (Del.

DCF 40