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M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

As I mentioned in my last post, Discounted Cash Flow (DCF) is a valuation method that uses free cash flow projections, a discount rate, and a growth rate to find the present value estimate of a potential investment. Derive Free Cash Flow to Firm (FCFF).

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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

To answer this question, three things are needed: The company’s intrinsic value: Typically based on cash flow streams available to shareholders, premiums paid in the marketplace, and scarcity associated with the target. The range of value: Typically depends on performance variables (sales, margins, and capital requirements).

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Methods and Examples on How to Value a Company

Lake Country Advisors

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. It’s integral to ensuring that the sale benefits all stakeholders and should be one of your priorities before advertising it to potential buyers. Determine Discount Rate: Assuming InnovateTech’s WACC is 10%.

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Delaware Supreme Court Reverses And Remands Appraisal Award But Rejects Bright-Line Presumption In Favor Of Deal Price

Shearman & Sterling

per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. The Court of Chancery had calculated a fair value of $10.30 per share, 8.4% higher than the deal price of $9.50

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Delaware Supreme Court Reverses And Remands Appraisal Award But Rejects Bright-Line Presumption In Favor Of Deal Price

Shearman & Sterling

per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. The Court of Chancery had calculated a fair value of $10.30 per share, 8.4% higher than the deal price of $9.50

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Understanding the Impact of Interest Rates on Private Equity and Business Valuations

Focus Investment Banking

Cost of Leveraged Buyouts: PE firms often use leveraged buyouts (LBOs) to acquire companies, relying heavily on debt financing. Lower interest rates make this debt cheaper, enabling PE firms to execute more buyouts or bid higher for target companies. This market trend can raise the comparative value of similar businesses.

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Should I Sell My Insurance Agency?

Sica Fletcher

Other times, they are hoping to use their share of the sale to alleviate personal debt. The table below outlines a few key criteria that you should consider before going through with a sale: Should I Sell My Insurance Agency? Manageable Debt. Are looking for a career change. hidden behind a paywall or b.)