Remove Discounted Cash Flow Remove Finance Remove Public Trading
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M&A Blog #14 – valuation (roles, types, equity & enterprise values)

Francine Way

Strategy, due diligence, financing, purchase price, and buyer-seller alignment all revolve around valuation and the enterprise value for the buyer and the seller. It drives prices, ROI, and financing. This liquidity feature typically creates a private company discount of around 25-35% range. It is no different in M&A.

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Mergers and Acquisitions Valuation Strategies: Unlocking the Secrets to Successful M&A Transactions

Sun Acquisitions

Deal Financing: Valuation guides the selection of the proper financing structure for the deal, including how much capital is required and where it should be sourced. Comparable Company Analysis (CCA): CCA involves comparing the target company to similar publicly traded companies.

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

RKJ Partners

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.

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