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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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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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Vertical Merger Integration: Definition, Legal, and Regulatory Considerations

Peak Frameworks

Valuation Techniques: Employing discounted cash flow (DCF) and comparative analysis to ascertain the target’s value. However, the path is fraught with complexities, from the financial analysis and valuation intricacies to navigating the legal and regulatory landscape.

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Value – The First Variable in Your Selling Equation

Successful Acquisitions

In order to adequately discuss value, it is first necessary to understand how value is determined and what theoretical valuation approaches have to do with the practical realities of closing deals. Valuations come in many forms and there are a number of approaches to arriving at a company’s value. sales or 7x EBITDA.

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

Mergers and Inquisitions

At the junior levels , entry-level professionals in both fields spend a lot of time in Excel working on models, valuations, and documents such as equity research reports and investment banking pitch books. Investment Banking: Outlook, AI, and Automation Equity Research vs. Investment Banking: Which Ones Right for You?

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

Mergers and Inquisitions

Growth Equity Definition: In traditional growth equity, firms invest minority stakes in companies with proven business models that need the capital to expand; some firms also use “growth buyout” strategies, which are like traditional leveraged buyouts but with higher growth potential. You could keep going and add plenty of names.

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Long-Only Hedge Funds: A Cozy Career, or a Complete Contradiction?

Mergers and Inquisitions

I’ll answer both questions here, but I want to start with a few definitions: What is a Long-Only Hedge Fund? Think: a deep review of companies’ financial statements, 3-statement models , and DCF-based valuations. The main difference is that long-only asset management firms test you on broader but shallower knowledge.

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