Francine Way

JULY 19, 2017

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). An example of this technique include the changes of stock value given differing: WACCs and long-term free cash flow growth rates. how likely is it that the stock price is that low?).

Valuation 130

Valuation M&A Stock DCF 130

Shearman & Sterling

JANUARY 2, 2017

Travis Laster of the Delaware Court of Chancery relied on the final deal price to determine the fair value of stock in Lender Processing Services, Inc. ("LPS"), in an appraisal action brought by shareholder petitioners after Fidelity National Financial, Inc. ("Fidelity") acquired LPS. Merion Capital L.P.,

Discounted Cash Flow 40

Discounted Cash Flow DCF Sale Stock 40

Mergers and Inquisitions

NOVEMBER 20, 2024

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. You could still use a DCF , but it would have to go far into the future (e.g.,

Private Equity 59

Private Equity Equities Capital Valuation 59

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 In re Appraisal of Dell Inc., 565, 2016 (Del. per share reflecting an approximate 28% premium.

Discounted Cash Flow 52

Discounted Cash Flow DCF Private Equity Shares 52

Francine Way

JULY 14, 2017

Data sources like Pitchbook would typically captured this information; or it can be calculated using the samples’ Consideration Per Share and sample targets’ stock prices at the time of the announcements - both pieces of data can be found in press releases of the sample transactions or in Pitchbook.

Valuation 130

Valuation M&A Shares DCF 130

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

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 In re Appraisal of Dell Inc., 565, 2016 (Del. per share reflecting an approximate 28% premium.

Discounted Cash Flow 40

Discounted Cash Flow DCF Private Equity Shares 40

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

Discounted Cash Flow 40

Discounted Cash Flow DCF Corporation Mergers 40

Mergers and Inquisitions

DECEMBER 6, 2023

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. If Company Z announces a new product at this upcoming conference, how much could its stock price increase?

Funds 104

Funds Management Recruitment Portfolio 104

Francine Way

JULY 17, 2017

Common Stock = the opposite (or negative) amount of the current amount + the Sponsor’s Equity from the Sources and Uses table. Common Stock = prior year (proform) Common Stock. Total Shareholders Equity = Retained Earnings + Common Stock. This value will be the same through the rest of the holding period.

Valuation 130

Valuation M&A Debt Book-building 130

Mergers and Inquisitions

JULY 19, 2023

Long-Only Hedge Fund Definition: A long-only hedge fund buys securities to earn a profit when they increase in price, and it does not bet against securities by borrowing to sell them in advance; the fund might invest in stocks, bonds, derivatives, structured products, and almost anything else.

Funds 52

Funds Asset Management Management Equities 52

Mergers and Inquisitions

MARCH 13, 2024

However, they often invest using preferred stock with liquidation preferences attached to limit their downside risk (similar to VCs). 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

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, Following the adjustments for synergies and changes in Regal’s value between signing and closing, the fair market value of Regal’s common stock was determined to be $23.60/share,

Mergers and Acquisitions 52

Mergers and Acquisitions Sale Shares Entertainment 52

RKJ Partners

AUGUST 6, 2017

Below are the six recognized methodologies with short explanations of each: Discounted Cash Flow (DCF) Analysis: This analysis derives an ‘intrinsic’ value of a company. 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

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: 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

APRIL 5, 2023

They might ask you to pitch a stock, but it will be less formal than in ER and HF interviews. The best way to prepare for the case study or stock pitch is to practice reading about different companies and making decisions quickly. How would you invest in Industry X?” “Why Why this firm?” “Why Why this country?”).

Recruitment 59

Recruitment Funds Private Equity Investment 59