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M&A Blog #15 – valuation (tools and data preparation)

Francine Way

Discounted Cash Flow (DCF) i s 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. I will discuss general tools and credible sources of information that a valuation professional can use for the analysis.

Valuation 130
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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

These equity transactions between related parties are not negotiated purely on economic / financial terms. These concepts will be very important in the next few posts as we discussed the specifics of different valuation methods such as Discounted Cash Flows, Comparable Company, Precedent Transaction, Dividend Discount Model, and more.

Valuation 130
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Evaluating Asset Management Companies: Key Metrics and Methodologies

MergersCorp M&A International

Discounted Cash Flow (DCF) Analysis: A DCF model is often used to estimate the intrinsic value of the company based on projected future cash flows. Key metrics used include Price/Earnings (P/E) ratios, Price/AUM ratios, and enterprise value ratios (EV/EBITDA).

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Factors impacting Perpetual Growth Rate in a DCF

Wizenius

One critical aspect is determining the appropriate growth rate for the perpetual growth phase in a Discounted Cash Flow (DCF) model. Macroeconomic Factors: The global economic landscape can significantly impact growth rates.

DCF 52
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How do I structure the sale of my software company to minimize taxes?

iMerge Advisors

At iMerge, we typically begin with a detailed financial analysis, including: 1236 months of historical financials Customer cohort and retention data Unit economics (CAC, LTV, payback period) Pipeline and sales velocity metrics Competitive landscape and market trends We then apply relevant valuation methodologies such as discounted cash flow (DCF), (..)

Sale 40
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Buy Side M&A Blog Series - Vol 7 - Valuing The Target

RKJ Partners

To be more specific, business valuation is a process involving a set of procedures and approaches used to gauge the economic value of an ownership interest in a business as a going concern. 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
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Strategic Corporate Development in M&A: Driving Innovation and Growth Opportunities

Devensoft

Valuation methods can include discounted cash flow analysis, comparable company analysis, and precedent transaction analysis. Due Diligence Guide for Today’s M&A Navigate M&A due diligence in a turbulent economic landscape with confidence.

M&A 52