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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. This liquidity feature typically creates a private company discount of around 25-35% range. Their valuations tend to be materially lower than an arm’s-length deal.

Valuation 130
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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