Francine Way

JULY 20, 2017

Thus far, we have covered four popular valuation methods in M&A (DCF, Comparable Company, Precedent Transaction, and LBO) and one less known one that is making its way out of the academic realm into the business world (Dividend Discount Method, DDM). Each asset class is revalued based on its sale in a 60-90 day sales process.

Valuation 130

Valuation M&A Business IT 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 40

Discounted Cash Flow DCF Sale Stock 40

Francine Way

JULY 19, 2017

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). For the purpose of our post, the output variables should be the per-share equity value returned from our DCF, Comparable Company, etc. Well, in the real world, there is no certainties in business.

Valuation 130

Valuation M&A DCF Stock 130

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

Sun Acquisitions

OCTOBER 13, 2023

By comparing key financial metrics such as price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, and price-to-book (P/B) ratios, analysts can estimate the target company’s value. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation Mergers Acquisitions 59

Sun Acquisitions

NOVEMBER 17, 2023

The valuation is based on key financial metrics such as Price-to-Earnings (P/E) ratios, Price-to-Sales (P/S) ratios, or Price-to-Book (P/B) ratios. Discounted Cash Flow (DCF): DCF is a fundamental valuation method that estimates the present value of a company’s future cash flows.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation M&A Mergers 59

Mergers and Inquisitions

JANUARY 22, 2025

The difference is that IB is more of an explicit sales job , as deals must close for the bank to earn fees. Equity research at the senior levels does require sales skills, but its more about being a conduit than a closer.

Investment Banking 64

Investment Banking Equities Bank Banking 64

Mergers and Inquisitions

JANUARY 10, 2024

The Nature of the Work: Markets, Analysis, Sales, and Interpersonal Skills Wealth management (WM) requires broader knowledge of the financial markets since you may have to advise clients on everything from their portfolio allocations to upcoming tax changes. If you have good sales skills, you could break in with a middling GPA (3.0 – 3.5)

Investment Banking 59

Investment Banking Management Bank Banking 59

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

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

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

Focus Investment Banking

APRIL 7, 2024

Discounted Cash Flow (DCF) Analysis: This is the most common valuation method involving discounting future cash flows back to their present value. 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.

Private Equity 52

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. It determines a more constant rate of return on business growth that naturally fluctuates over time.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

Mergers and Inquisitions

DECEMBER 6, 2023

So, expect a lot of quarterly financial projections , quick public comps , and simple DCF models linked to specific catalysts. If you’re a more experienced candidate, investment banking is a great background for these multi-managers , but many people also get in from equity research and sales & trading backgrounds.

Funds 104

Funds Management Recruitment Portfolio 104

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. 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

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 also draft sales team memos and registration statements and conduct due diligence if you’re leading the offering. Should You Accept a Capital Markets Internship or Job Offer?

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: Assuming it is developing patent-protected products, you usually use a Sum-of-the-Parts DCF where you project revenue and expenses for each drug, discount the cash flows to Present Value, and then add them up.

Capital 59

Capital Valuation Investment Portfolio 59

Mergers and Inquisitions

NOVEMBER 1, 2023

At the time of the deal, it was expected to grow sales at 3-5%: Remember that PE deals do not require “growth.” Interview Guide : There’s a DCF case study based on Attendo AB, a healthcare facility company in Sweden. Advanced Financial Modeling : There’s a case study on Jazz Pharmaceuticals if you’re more interested in that vertical.

Private Equity 59

Private Equity Healthcare Equities Middle Market 59

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. How long will it take for the drug to launch and reach peak sales?

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. If the company executes well, it could easily reach $250 – $300 million in sales over the next 5 years, up from $90 million at the time of the deal.”

Private Equity 59

Private Equity Equities Capital Valuation 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