Remove DCF Remove Mergers Remove Trading
article thumbnail

Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

Mergers and acquisitions (M&A) play a vital role in shaping the business landscape, enabling companies to expand, diversify, and gain a competitive edge. This approach relies on analyzing the market value of comparable publicly traded companies, known as guideline companies or multiples.

article thumbnail

Vertical Merger Integration: Definition, Legal, and Regulatory Considerations

Peak Frameworks

Understanding Vertical Mergers A vertical merger involves a company integrating with another that operates within its own supply chain, either upstream (suppliers) or downstream (distributors). Anti-trust Issues: Especially in North America, regulatory scrutiny can delay or derail mergers that significantly alter market dynamics.

Mergers 52
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Mergers and Acquisitions Valuation Strategies: Unlocking the Secrets to Successful M&A Transactions

Sun Acquisitions

Mergers and acquisitions (M&A) have long been a cornerstone of corporate growth and strategy. Post-Merger Integration: Understanding the value of the target company is crucial for post-merger integration planning. It ensures a smooth transition and the realization of synergies.

article thumbnail

Methods and Examples on How to Value a Company

Lake Country Advisors

Market Capitalization Market capitalization is one of the simplest and most commonly used methods for valuing a publicly traded company. Example Scenario: Suppose XYZ Corp is a publicly traded technology company with 50 million shares outstanding, and the current share price is $20.

article thumbnail

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

Mergers and Inquisitions

Traditionally, banks gave away equity research reports for free to incentivize large clients to trade with the bank. Therefore, equity research generated revenue indirectly via trading commissions , but it was still considered a front-office role due to the compensation, interaction with managers and investors, and exit opportunities.

article thumbnail

The Dividend Discount Model (DDM): The Black Sheep of Valuation?

Mergers and Inquisitions

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.

article thumbnail

Multi-Manager Hedge Funds: A Meritocratic Paradise or a Revolving Door of Burnout?

Mergers and Inquisitions

They do this by setting up entire teams (“pods”) for specific sectors, having each team learn their stocks or other securities in-depth, and then trading frequently based on catalysts and changes in investor sentiment. It’s more about “trading” and less about investing (but this could be a pro for the right person).

Funds 104