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. In re Appraisal of Dell Inc.,

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 main argument in favor of the DDM is that it best represents what happens in real life when you buy a stock.

Valuation 64

Valuation DCF Debt Financial Modeling 64

Shearman & Sterling

JULY 25, 2017

. ("Softbank") on claims of breaches of fiduciary duty and aiding and abetting, respectively, in connection with Sprint's merger with Clearwire Corporation ("Clearwire"); and (ii) appraised the fair value of Clearwire's stock at the time of the merger, awarding the dissenting stockholder petitioners $2.13 Read more

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. In re Appraisal of Dell Inc.,

Discounted Cash Flow 40

Discounted Cash Flow DCF Private Equity Shares 40

Cooley M&A

JULY 9, 2021

To determine the fair value of Regal’s common stock at the effective time of the merger, the court reduced the deal price by $3.77/share, 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.

Mergers and Acquisitions 52

Mergers and Acquisitions Sale Shares Entertainment 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). However, they often invest using preferred stock with liquidation preferences attached to limit their downside risk (similar to VCs). Debt financing is much more common, and the GE firm is often the first institutional investor.

Private Equity 105

Private Equity Equities Capital Portfolio 105

Mergers and Inquisitions

SEPTEMBER 20, 2023

A: As with hedge fund stock pitches , you need to research markets and companies and develop 2-3 solid ideas here. 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. Q: How do you value a biotech startup?

Capital 59

Capital Valuation Investment Portfolio 59

Mergers and Inquisitions

MARCH 5, 2025

Many biotech stocks are relatively uncorrelated with the broader market because they trade based on catalysts rather than GDP growth, inflation, interest rates, or consumer spending. Biotech stocks let hedge funds bet on very specific aspects of company performance. Its not just Will the drug succeed?

Funds 64

Funds Healthcare Mergers and Acquisitions Valuation 64

Mergers and Inquisitions

NOVEMBER 20, 2024

The company is a leader in the nonalcoholic beer market, with almost 20% market share currently. A: Unlike most PE deals, traditional growth equity deals do not use debt and are for minority stakes in companies, but they often have more “structure” via liquidation preferences and preferred stock.

Private Equity 59

Private Equity Equities Capital Valuation 59