Wizenius

APRIL 8, 2023

The quick fix - Venture Capital Method of valuation for start-ups Previously, as elaborated in my previous posts in this thread, the conventional DCF falls apart when it comes to valuing a start-up/young firm A quick (and a dirty) fix to the above problem is the VC Method where 1) Estimate revenue or earnings in the near future of the start-up (typically (..)

DCF 52

DCF Valuation Equities Public Trading 52

Francine Way

JULY 14, 2017

Calculating implied transaction Total Enterprise Value (TEV) from the company’s most recent financial data and Consideration Per share. The next (2nd) step in Precedent Transaction calls for the calculation of our own proposed transaction’s TEV from the company’s most recent financial data and Consideration Per Share.

Valuation 130

Valuation M&A Shares DCF 130

How2Exit

FEBRUARY 23, 2023

Watch E#84 Here Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit crude, you're reading our notes, so.

Business 130

Business Negotiation DCF Acquisitions 130

OfficeHours

MAY 19, 2023

A Few Reads to Digest Valuation Simplified: How Discounted Cash Flow Modeling Drives Financial Analysis Harness Discounted Cash Flow (DCF) modeling for financial analysis. Use forum feedback for career advancement. Learn to interpret anonymous blog critiques as a tool for professional success.

Discounted Cash Flow 130

Discounted Cash Flow Financial Analysis Accountant DCF 130

Lake Country Advisors

AUGUST 8, 2024

It is calculated by multiplying the current share price by the total outstanding shares. Example Scenario: Suppose XYZ Corp is a publicly traded technology company with 50 million shares outstanding, and the current share price is $20. million Year 2: $2 million / (1 + 0.10)^2 = $1.65 million + $1.65 million + $2.25

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

Shearman & Sterling

JULY 25, 2017

per share, notwithstanding that the transaction closed at $5.00 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 per share deal price.

Discounted Cash Flow 52

Discounted Cash Flow DCF Corporation Mergers 52

Shearman & Sterling

DECEMBER 19, 2017

per share significantly undervalued the stock of Dell. 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 reflecting an approximate 28% premium. per share reflecting an approximate 28% premium.

Discounted Cash Flow 52

Discounted Cash Flow DCF Private Equity Shares 52

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 Modeling 64

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. valuation exercises. is returned in 6.7%

Valuation 130

Valuation M&A DCF Stock 130

Shearman & Sterling

JULY 25, 2017

per share, notwithstanding that the transaction closed at $5.00 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 per share deal price.

Discounted Cash Flow 40

Discounted Cash Flow DCF Corporation Mergers 40

Shearman & Sterling

DECEMBER 19, 2017

per share significantly undervalued the stock of Dell. 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 reflecting an approximate 28% premium. per share reflecting an approximate 28% premium.

Discounted Cash Flow 40

Discounted Cash Flow DCF Private Equity Shares 40

Cooley M&A

JULY 9, 2021

share, which represented the portion of the deal price attributable to projected synergies. share to reflect the change in value of the target between signing and closing. share, a 2.67% increase over the deal price. share for changes in Regal’s value between signing and closing, which was less than the $7.32/share

Mergers and Acquisitions 52

Mergers and Acquisitions Sale Shares Entertainment 52

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. This method is one that removes the market from the analysis and instead examines a business in its purest form – as a cash flow producing entity.

Valuation 52

Valuation Discounted Cash Flow DCF M&A 52

Mergers and Inquisitions

MARCH 13, 2024

the Founders sell some shares to take money off the table, but “the company” doesn’t get any of that cash). 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.

Private Equity 105

Private Equity Equities Capital Portfolio 105

Devensoft

AUGUST 22, 2023

The Enterprise Value Calculator incorporates various techniques, such as the discounted cash flow (DCF) method, market multiples, and comparable transactions analysis. Discount Rates Discount rates are used in the DCF method to determine the present value of future cash flows.

M&A 52

M&A Valuation Utilities Mergers and Acquisitions 52

Mergers and Inquisitions

OCTOBER 18, 2023

so you may look up stats on recent issuances and share them with the lead team – but you are not heavily involved in the process. If this same $1 billion company went public in an IPO, it might sell 10 – 20% of its shares to investors. or debt offerings (investment-grade or high-yield bonds).

Investment Banking 59

Investment Banking Capital Market Recruitment Capital 59

Mergers and Inquisitions

SEPTEMBER 20, 2023

A: The “pre-money valuation” is a startup’s Equity Value before it issues new shares to the VC firm, and the “post-money valuation” is the startup’s Equity Value after that happens. Investors that use these instruments contribute capital but do not get shares right away – instead, they convert into equity in the next priced round.

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). Precious metals miners earn much less revenue than companies that focus on copper or steel, but the sector gets a disproportionate share of M&A activity because of the factors above. Anglo-American (U.K.),

Investment Banking 52

Investment Banking Bank Banking Investment 52

Mergers and Inquisitions

NOVEMBER 20, 2024

The company is a leader in the nonalcoholic beer market, with almost 20% market share currently. In models, liquidation preferences can be tricky because you must recalculate each investor group’s common equity ownership based on whether they convert to common shares or stay in preferred.

Private Equity 59

Private Equity Equities Capital Valuation 59

Mergers and Inquisitions

MARCH 5, 2025

If the fund is right, the company is potentially mispriced by 50%, and the share price has the potential to double once the true sales potential becomes clear. Stick to straightforward companies with 1 2 main products and aim for simple DCF models that take no more than ~100 rows in Excel.

Funds 64

Funds Healthcare Mergers and Acquisitions Valuation 64