Sun Acquisitions

OCTOBER 13, 2023

This article aims to provide a concise overview of some commonly used valuation techniques and shed light on their significance in facilitating informed decision-making during the M&A process. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique.

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Mergers and Inquisitions

MAY 3, 2023

It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF. The basic set of steps looks like this: Step 1: Forecast Revenue and Expenses This is the same as in any other 3-statement model or DCF.

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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. Information Memorandum: Include experience in preparing persuasive information memoranda to attract investors and facilitate successful deals.

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Francine Way

JULY 17, 2017

It is worth noting at this junction that the debt-interest schedule, specifically the revolver portion of it, functions as a plug to the 3-statement model; very similar to the plugs we used in DCF a while back. Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.),

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Focus Investment Banking

APRIL 7, 2024

As a business owner, understanding the financial ecosystem in which your company operates is crucial for making informed decisions. 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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Devensoft

AUGUST 22, 2023

Navigating M&A valuations with precision is paramount for informed decision-making. Properly valuing a company involved in an M&A transaction allows stakeholders to make informed decisions and negotiate effectively. Continuously refine and fine-tune the valuation as new information becomes available.

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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. This analysis provides valuable insights into the company's financial performance, risk exposure, and helps inform decision-making in an inflationary and volatile currency environment.

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Successful Acquisitions

MARCH 2, 2023

The third and final approach that I’ll discuss is the Discounted Cash Flow (“DCF”) Approach. The DCF Approach has its own share of drawbacks as well however. So given the three imperfect methods discussed, how does one use this information to arrive at a valuation? Here is where the art of valuation comes into play.

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Mergers and Inquisitions

DECEMBER 20, 2023

30 – 40 coffee chats or informational interviews ). A good target might be to complete 20-30 coffee chats or informational interviews by the time your second year starts. You will retain far more information if you practice with companies you’re interested in than if you passively consume content.

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Software Equity Group

FEBRUARY 26, 2024

Being aware of these terms and their implications can significantly enhance your ability to navigate negotiations, make informed business decisions, and demonstrate a comprehensive understanding of your company’s value. DCF is used when making investment decisions and understanding a business’s current and future value.

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RKJ Partners

AUGUST 6, 2017

During preliminary due diligence, the view of valuation is often heavily contingent on the financial information provided by the seller. As a result, a buyer’s view of the valuation may need to be refined multiple times as additional seller information is provided.

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Mergers and Inquisitions

MARCH 13, 2024

Financial Modeling: Like private equity, 3-statement models are common, as are valuations and DCF models , but LBO models are less common since not all deals use debt. You could easily get asked to complete an LBO modeling test, a 3-statement model, or a DCF, and standard IB interview questions and VC interview questions could come up.

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iMerge Advisors

APRIL 9, 2025

Whether you're contemplating a full exit, raising growth capital, or simply planning ahead, understanding your companys valuation is foundational to making informed strategic decisions. A Strategic Guide to Valuation For software founders and CEOs, few questions carry more weight than: What is my software company worth?

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Mergers and Inquisitions

JUNE 21, 2023

Some of these firms offer internships or off-cycle roles , but there’s not much information about most of them. Finally, there are MENA-based boutique investment banks , such as Alpen, Arqaam, Awad, deNovo, EFG Hermes, SHUAA, and Swicorp.

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Cooley M&A

JULY 9, 2021

January 2020) -3.67% Yes, reduced for synergies Arms-length transaction with third party; unconflicted board; buyer conducted diligence which included non-public information; two price increases extracted; non-preclusive deal protections Final (no appeal) Regal Entertainment (VC Laster – Del.

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Mergers and Inquisitions

SEPTEMBER 20, 2023

A: You would start by reading about the market and its current startups and finding product, team, and financial information. You’ll usually review each startup’s pitch deck or meet with them, and if they’re of interest, you’ll go through additional meetings and request more information before investing (see above).

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Mergers and Inquisitions

OCTOBER 18, 2023

Investment Banking: Skill Sets The main difference here is that ECM and DCM are far less modeling-intensive, so you’ll spend more time in PowerPoint drafting market update slides and sharing information with different groups. Should You Accept a Capital Markets Internship or Job Offer?

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Mergers and Inquisitions

APRIL 19, 2023

Valuation , such as the different multiples used for mining companies and the NAV model in place of the DCF (see below). To value it, we build a standard DCF based on production volumes, CapEx to drive capacity, and assumed steel prices: The valuation multiples are also standard (TEV / Revenue, TEV / EBITDA, and P / E).

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Mergers and Inquisitions

APRIL 5, 2023

Some other large funds might also qualify; unfortunately, there’s little information available on most of them. For example, they could give you information about two similar companies (Visa and Mastercard, Google and Facebook, etc.), ask you to recommend investing in one, and have you answer questions from the PMs about your decision.

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Mergers and Inquisitions

MAY 29, 2024

Because most of these assets are private , finding substantial information for deal discussions can be very difficult. Outside of LBOs, this Exit Value or Terminal Value concept is widely used in other corporate finance analyses, such as the DCF model.

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Mergers and Inquisitions

JULY 26, 2023

–> If the answer is “yes,” you have a higher chance of getting to evaluate documents like the Confidential Information Memorandum (CIM) , which is relevant when applying to IB roles later. For example, you could take one of the companies you found in the screening process and build a simple 3-statement model and DCF model for it.

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Mergers and Inquisitions

NOVEMBER 20, 2024

Early-stage VC is also less interesting because you want to close deals rather than pass on almost everything, and you want to take what’s already working and improve it rather than betting on companies with almost no information. Don’t even bother researching private companies because it’s hard to find detailed financial information.

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Mergers and Inquisitions

MARCH 5, 2025

The most efficient way to do this is to find a few public biotech companies that have already passed Phase II clinical trials and have a lot of data and financial information. Stick to straightforward companies with 1 2 main products and aim for simple DCF models that take no more than ~100 rows in Excel.

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