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Working Capital Changes & Impact on DCF

Wizenius

Working capital refers to the difference between a company's current assets and current liabilities and is a measure of the operational liquidity required to fund day-to-day operations. Impact of Working Capital on Cash Flows: Changes in working capital can affect the cash flows used in the DCF analysis.

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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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Evaluating Asset Management Companies: Key Metrics and Methodologies

MergersCorp M&A International

Discounted Cash Flow (DCF) Analysis: A DCF model is often used to estimate the intrinsic value of the company based on projected future cash flows. Key metrics used include Price/Earnings (P/E) ratios, Price/AUM ratios, and enterprise value ratios (EV/EBITDA).

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Power-Up Your Resume: Essential Investment Banking Keywords

Wizenius

Highlight your experience in performing company valuations using various methods, such as discounted cash flow (DCF) analysis, comparable company analysis, or precedent transactions. Fund Raising: Showcase your expertise in fundraising activities, which play a vital role in investment banking.

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Equity Research vs. Investment Banking: Careers, Compensation, Exits, and AI/Automation Risk

Mergers and Inquisitions

For example, in IB interviews, youll have to know about accounting, valuation/DCF analysis, merger models, and LBO models plus the usual fit/behavioral questions , your resume walkthrough , and a few recent deals. public markets roles ( hedge funds , asset management , etc.), bulge bracket research team to startup PE firm).

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Growth Equity Interview Questions: Full List, Answers, and Differences vs. Venture Capital and Private Equity

Mergers and Inquisitions

Performance and Valuations – PE and VC funds raised in the 2011 – 2020 period have performed decently over the past few years (median IRRs of 15 – 20%), but growth equity has been lower, with a median closer to 10%, likely because there was a much bigger valuation reset in the late-stage funding market and a big drop in exits.