Remove DCF Analysis Remove Financial Statement Remove Sale
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M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

Once the extraordinary, unusual, non-recurring items are identified, the next (2nd) step is to have them added back / removed from the historical income statement to normalize the financial statement. For simplicity, I prefer to state everything but interest income and expense as percentages of sales revenue.

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Buy Side M&A Blog Series - Vol 7 - Valuing The Target

RKJ Partners

For the purposes of this article, we will focus on valuation from the perspective of a merger and acquisition transaction, and specifically from the viewpoint of a buyer evaluating a business for sale. During preliminary due diligence, the view of valuation is often heavily contingent on the financial information provided by the seller.

M&A 40