Shearman & Sterling

FEBRUARY 3, 2021

based on a discounted cash flow analysis ("DCF"). On January 22, 2021, the Delaware Supreme Court affirmed en banc the Delaware Court of Chancery's decision appraising outsourcing and financial services company SourceHOV Holdings, Inc. SourceHOV Holdings Inc. Manichaean Capital LLC, No. 215, 2020 (Del.

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DCF DCF Analysis Discounted Cash Flow Financial Services 40

Lake Country Advisors

AUGUST 8, 2024

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. It’s integral to ensuring that the sale benefits all stakeholders and should be one of your priorities before advertising it to potential buyers. However, company valuation isn’t as simple as slapping a price on your business.

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Valuation Discounted Cash Flow S&P DCF Analysis 97

Wizenius

JUNE 28, 2023

One critical aspect is determining the appropriate growth rate for the perpetual growth phase in a Discounted Cash Flow (DCF) model. Valuation is a complex art that requires a deep understanding of financial modeling and various influencing factors.

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DCF Financial Models Financial Modeling Discounted Cash Flow 52

Shearman & Sterling

AUGUST 22, 2016

On August 11, 2016, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery relied on his own discounted cash flow ("DCF") analysis to determine the fair value of ISN Software Corp. ("ISN") in an appraisal action brought by two minority shareholders following the merger of ISN with its wholly-owned subsidiary.

DCF 40

DCF Discounted Cash Flow Utilities Valuation 40

Shearman & Sterling

MARCH 6, 2018

​On February 23, 2018, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery ruled, based on his own discounted cash flow ("DCF") analysis, that the fair value of AOL Inc. ("AOL") was below the deal price paid by Verizon Communications Inc. ("Verizon") to acquire it. Read more

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DCF Analysis DCF Discounted Cash Flow Valuation 40

Shearman & Sterling

NOVEMBER 7, 2017

On October 30, 2017, the Delaware Supreme Court affirmed the decision of the Delaware Court of Chancery determining the fair value of ISN Software Corp. ("ISN") in an appraisal action brought by minority stockholders following the cash-out merger of ISN with its wholly-owned subsidiary, at the direction of its controlling stockholder.

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DCF Discounted Cash Flow Mergers IT 40

How2Exit

FEBRUARY 23, 2023

It is believed that finding and pursuing one's Ikigai can lead to a sense of flow and happiness as well as improved physical and mental health. Ron Concept 1: Buy An Existing Business For Growth The idea of buying an existing business for growth is one that has been around for many years.

Business 130

Business Negotiation DCF Acquisitions 130

Shearman & Sterling

JANUARY 2, 2017

While the court conducted its own DCF (discounted cash flow) analysis drawing from expert submissions, Vice Chancellor Laster ultimately deferred entirely to the deal price, finding that the sale process was fair and based on meaningful competition in a well-functioning market, and thus generated reliable evidence of fair value.

Discounted Cash Flow 52

Discounted Cash Flow DCF Sale Capital 52

Shearman & Sterling

DECEMBER 19, 2017

After a trial, the Court of Chancery had disregarded the deal price and instead applied its own discounted cash flow ("DCF") analysis, arriving at a valuation of $17.62 per share significantly undervalued the stock of Dell. In re Appraisal of Dell Inc., 565, 2016 (Del.

Discounted Cash Flow 52

Discounted Cash Flow DCF Private Equity Shares 52

Shearman & Sterling

JANUARY 2, 2017

While the court conducted its own DCF (discounted cash flow) analysis drawing from expert submissions, Vice Chancellor Laster ultimately deferred entirely to the deal price, finding that the sale process was fair and based on meaningful competition in a well-functioning market, and thus generated reliable evidence of fair value.

Discounted Cash Flow 40

Discounted Cash Flow DCF Sale Capital 40

Shearman & Sterling

JULY 25, 2017

Noting that the appraisal statute requires the exclusion of "any synergies present in the deal price," the Court evaluated the competing discounted cash flow ("DCF") analyses offered by the parties and adopted the $2.13 9042-VCL (Del. July 21, 2017). per share deal price. Read more

Discounted Cash Flow 52

Discounted Cash Flow DCF Corporation Mergers 52

Wizenius

MAY 14, 2023

Terminal Value The terminal value is an essential component of a discounted cash flow (DCF) analysis. It represents the value of a business or an investment beyond the explicit projection period used in the DCF model. This ensures that the terminal value contributes a proportionate amount to the overall valuation.

DCF Analysis 52

DCF Analysis Discounted Cash Flow DCF Valuation 52

Wizenius

JUNE 12, 2023

Consider incorporating sensitivity analysis to understand the impact of changing market conditions on cash flows. Discounted Cash Flow (DCF) Analysis: DCF analysis is commonly used to value companies, even in volatile industries. Sum up the expected cash flows to determine the company's valuation.

DCF Analysis 52

DCF Analysis Discounted Cash Flow Risk Assessment DCF 52

Shearman & Sterling

DECEMBER 19, 2017

After a trial, the Court of Chancery had disregarded the deal price and instead applied its own discounted cash flow ("DCF") analysis, arriving at a valuation of $17.62 per share significantly undervalued the stock of Dell. In re Appraisal of Dell Inc., 565, 2016 (Del.

Discounted Cash Flow 40

Discounted Cash Flow DCF Private Equity Shares 40

Shearman & Sterling

JULY 25, 2017

Noting that the appraisal statute requires the exclusion of "any synergies present in the deal price," the Court evaluated the competing discounted cash flow ("DCF") analyses offered by the parties and adopted the $2.13 9042-VCL (Del. July 21, 2017). per share deal price. Read more

Discounted Cash Flow 40

Discounted Cash Flow DCF Corporation Mergers 40

Sun Acquisitions

OCTOBER 13, 2023

Income-Based Valuation The income-based valuation method focuses on the target company’s ability to generate future cash flows and assesses the present value of these cash flows. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique.

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Mergers and Acquisitions Valuation Mergers Acquisitions 59

MergersCorp M&A International

NOVEMBER 1, 2024

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. Here’s a detailed examination of how to value an AMC. It represents the total market value of assets managed on behalf of clients.

Asset Management 52

Asset Management Management Valuation Discounted Cash Flow 52

Wizenius

JUNE 11, 2023

Discounted Cash Flow (DCF) models can be adjusted by incorporating inflation rates and currency exchange rate assumptions into cash flow projections. Adjust Financial Statements for Inflation: Normalize historical financial statements by adjusting for the effects of inflation.

Financial Models 52

Financial Models Financial Modeling Financial Statement Discounted Cash Flow 52

Sun Acquisitions

NOVEMBER 17, 2023

Discounted Cash Flow (DCF): DCF is a fundamental valuation method that estimates the present value of a company’s future cash flows. It involves forecasting cash flows and applying a discount rate. It ensures a smooth transition and the realization of synergies.

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Mergers and Acquisitions Valuation M&A Mergers 59

Peak Frameworks

JUNE 7, 2023

Understanding the Cash Flow Statement The cash flow statement provides a comprehensive picture of a company's cash inflows and outflows. It's broken down into three sections: Operating, Investing, and Financing cash flows. For instance, in 2020, IBM reported solid net income.

Financial Analysis 52

Financial Analysis Discounted Cash Flow DCF Finance 52

Wizenius

JUNE 5, 2023

Highlight your experience in performing company valuations using various methods, such as discounted cash flow (DCF) analysis, comparable company analysis, or precedent transactions. In the highly competitive field of investment banking, a well-crafted resume can be the key to landing coveted interview opportunities.

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Investment Banking Banking Investment Bank 52

Peak Frameworks

MAY 2, 2024

Valuation Techniques: Employing discounted cash flow (DCF) and comparative analysis to ascertain the target’s value. If you're interested in breaking into finance, check out our Private Equity Course and Investment Banking Course , which help thousands of candidates land top jobs every year.

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Mergers Mergers and Acquisitions Financial Analysis Discounted Cash Flow 52

Successful Acquisitions

MARCH 2, 2023

Still another potential problem is that sometimes we must use public company data and then discount the results because the subject company is private. Most analysts use a combination of methods when determining value so it helps to be familiar with some of the basic approaches when contemplating a transaction.

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Valuation Discounted Cash Flow DCF M&A 52

Focus Investment Banking

APRIL 7, 2024

This can lead to a more cautious approach from PE firms, as higher rates can impact the future cash flows and growth prospects of potential investment targets. Discounted Cash Flow (DCF) Analysis: This is the most common valuation method involving discounting future cash flows back to their present value.

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Private Equity Valuation Equities Business 52

Software Equity Group

FEBRUARY 26, 2024

DCF: Discounted Cash Flow Estimates a company’s value and forecasts future cash flow by incorporating the time value of money. DCF is used when making investment decisions and understanding a business’s current and future value. The metric indicates the amount of cash flow generated after expenses.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

iMerge Advisors

APRIL 9, 2025

Discounted Cash Flow (DCF) : A more theoretical approach, used less frequently in lower middle-market deals due to its complexity and sensitivity to assumptions. Revenue Multiples : Common for high-growth SaaS companies, especially those reinvesting heavily in growth and not yet profitable.

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Valuation M&A Profitability Discounted Cash Flow 40

iMerge Advisors

APRIL 9, 2025

In this article, well unpack the key valuation drivers, explore current market multiples, and offer practical steps to help you assess and enhance the value of your software business. Understanding the Core Valuation Framework At its core, the valuation of a software company is typically based on a multiple of earnings or revenue.

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Sale Valuation M&A Discounted Cash Flow 40

RKJ Partners

AUGUST 6, 2017

Below are the six recognized methodologies with short explanations of each: Discounted Cash Flow (DCF) Analysis: This analysis derives an ‘intrinsic’ value of a company. This means that the method evaluates the future cash flow of the company and then discounts those cash flows to the present day.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

Devensoft

AUGUST 22, 2023

As opposed to merely focusing on the market capitalization, which only accounts for the company’s equity value, the Enterprise Value Calculator considers the company’s debt, cash, and other financial liabilities. EBITDA multiples allow you to assess a company’s earnings power and its ability to generate cash flows.

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M&A Valuation Utilities Mergers and Acquisitions 52

iMerge Advisors

APRIL 9, 2025

Discounted Cash Flow (DCF): Useful for businesses with predictable cash flows, though less common in early-stage or high-growth SaaS due to forecasting uncertainty. A strategic acquirer may pay a premium for synergies, while a financial buyer may focus on cash flow and risk-adjusted returns.

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Valuation M&A Discounted Cash Flow Business 40