DCF Debt M&A 
Francine Way
JULY 12, 2017
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.
Francine Way
JULY 13, 2017
Calculating cost of debt, cost of equity, and weighted average cost of capital (WACC). Enterprise Value = Market Capitalization + Total Debt - Total Cash. As we have previously covered what are needed to complete these steps in our DCF discussion , I would refer to those steps (1 through 7) here.
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Francine Way
JULY 11, 2017
Discounted Cash Flow (DCF) i s 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 specific tools and data required for the analysis is determined by the type of valuation method used in the analysis.
Francine Way
JULY 17, 2017
Building a historical 3-statement model and a debt-interest schedule. Building the go-forward debt-interest schedule. Thus far, we have discussed three common valuation methods that most strategic and financial acquirers use when valuing a company for acquisitions or investments. Indeed, that is the scenario that I’m familiar with.
Francine Way
JULY 20, 2017
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 1st one for today is the Tangible Book Value (TBV) method.
Francine Way
JULY 19, 2017
Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). In all of these discussions, we assumed a set of static values for our variables. In other words, we assumed that each variable can have only one value. To-date, we have lumped them together.
Francine Way
JULY 14, 2017
Implied Transaction TEV = Implied Purchase Price + Debt + Preferred Stock + Minority Interest - Cash. Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.), Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.),
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