Remove DCF Remove Debt Remove Financial Services
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M&A Blog #22 – valuation (less known valuation methods)

Francine Way

Thus far, we have covered four popular valuation methods in M&A (DCF, Comparable Company, Precedent Transaction, and LBO) and one less known one that is making its way out of the academic realm into the business world (Dividend Discount Method, DDM). The 2nd valuation method for today is the Liquidation Value method.

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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

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. The targeted IRR might be in the 30 – 40% range.

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

RKJ Partners

Some methodologies are inappropriate for early stage businesses or those engaged in certain enterprises such as software development or financial services, where fixed assets are not usually important enough to use for purposes of valuation. As a result, the value of the company lies in its ability to repay the debt.

M&A 40