article thumbnail

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.

article thumbnail

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

Francine Way

I will discuss general tools and credible sources of information that a valuation professional can use for the analysis. Access to credible sources of information such as SEC EDGAR database , Treasury.gov , OECD GDP Forecast , Mergent Online, S&P Capital IQ, Hoovers, ValueLine, Yahoo Finance , MarketWatch , and Damodaran Online.

Valuation 130
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Methods and Examples on How to Value a Company

Lake Country Advisors

Collect Transaction Data: Gather detailed information about each transaction, including the purchase price, financial metrics of the acquired company (e.g., Gather detailed information about these transactions, such as the acquired companies’ purchase price, revenue, and EBITDA. revenue, EBITDA), and the terms of the deal.

article thumbnail

12 Lessons We Learned About Market Places, Data-Driven Advice, and Strategy From Interviewing Peter Lehrman CEO Of Axial About Selling Private Companies And The Necessary Preparations

How2Exit

This is because small businesses tend to have very little information available on the internet. The platform also offers resources to help buyers with financing, such as loan calculators and information about loan programs. This can help you to make an informed decision about who to work with.

Business 130
article thumbnail

The 11 Concepts And Ideas I Learned From Interviewing ChatGPT On How To Buy A Business.

How2Exit

Concept 6: Value Assets With DCF (Discounted Cash flow) One of the most important tools in the negotiation process is the discounted cash flow (DCF) method. This method is used to value assets by estimating the future cash flows they are expected to generate and discounting them back to present value.

Business 130
article thumbnail

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

Francine Way

Although the analysis will always be wrong when viewed from dollar and cents perspective, it is useful in narrowing the error range and making informed decisions about the prospective transaction. Valuation focuses on two questions: 1. What is the company worth? We have also discussed the differences between equity value and enterprise value.

Valuation 130
article thumbnail

Power-Up Your Resume: Essential Investment Banking Keywords

Wizenius

Highlight your experience in performing company valuations using various methods, such as discounted cash flow (DCF) analysis, comparable company analysis, or precedent transactions. Information Memorandum: Include experience in preparing persuasive information memoranda to attract investors and facilitate successful deals.