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.

Valuation 64

Valuation DCF Debt Financial Models 64

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.

Private Equity 52

Private Equity Valuation Equities Business 52

Successful Acquisitions

MARCH 2, 2023

We see payables from customers, but not the long relationship and reputation that fostered those sales. sales or 7x EBITDA. Another potential problem is that the value, EBITDA and Sales figures reported may not be accurate for private companies. The DCF Approach has its own share of drawbacks as well however.

Valuation 52

Valuation Discounted Cash Flow DCF M&A 52

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.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

Mergers and Inquisitions

MARCH 13, 2024

Scaling a company’s sales & marketing by hiring more sales reps. 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. Developing new products or services.

Private Equity 105

Private Equity Equities Capital Portfolio 105

RKJ Partners

AUGUST 6, 2017

For the purposes of this article, we will focus on valuation from the perspective of a merger and acquisition transaction, and specifically from the viewpoint of a buyer evaluating a business for sale. During preliminary due diligence, the view of valuation is often heavily contingent on the financial information provided by the seller.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

Cooley M&A

JULY 9, 2021

In the Delaware appraisal decisions that have followed, the court has consistently found deal price (minus synergies) to be the most reliable indicator of fair value, so long as there was a sufficiently robust sales process that bore “objective indicia” of reliability. Pre-Payment of Appraisal Award Non-Refundable. Conclusion.

Mergers and Acquisitions 52

Mergers and Acquisitions Sale Shares Entertainment 52

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?

Valuation 40

Valuation M&A Profitability Discounted Cash Flow 40

Mergers and Inquisitions

OCTOBER 18, 2023

Many firms put capital markets groups within “Investment Banking,” but some include it within Sales & Trading or “Global Markets.” You’ll find information on previous issuances and shareholders / investors, and you might occasionally work on a simple model for an IPO or bond issuance.

Investment Banking 59

Investment Banking Capital Market Recruitment Capital 59

Mergers and Inquisitions

SEPTEMBER 20, 2023

If you worked at a startup, how did you win more customers or partners in a sales or business development role? A: You would start by reading about the market and its current startups and finding product, team, and financial information. Q: Suppose that you join our firm. How would you screen for new companies to invest in?

Capital 59

Capital Valuation Investment Portfolio 59

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).

Investment Banking 52

Investment Banking Bank Banking Investment 52

Mergers and Inquisitions

MARCH 5, 2025

For example, a company may have won approval for its drug and indicated that its expected peak sales will be $5 billion annually. Based on this, the market values the company at a 1x Enterprise Value / Peak Sales multiple, so its current Enterprise Value is $5 billion. Short LQDA, Long UTHR: This works if you have the opposite view.

Funds 64

Funds Healthcare Mergers and Acquisitions Valuation 64

Mergers and Inquisitions

NOVEMBER 20, 2024

Communication/presentation skills and technical/modeling/deal skills are all quite important, but “sales skills” are also crucial if you’re interviewing at a firm with significant sourcing. Don’t even bother researching private companies because it’s hard to find detailed financial information. Q: Why our firm/group?

Private Equity 59

Private Equity Equities Capital Valuation 59