Shearman & Sterling

AUGUST 22, 2016

On August 11, 2016, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery relied on his own discounted cash flow ("DCF") analysis to determine the fair value of ISN Software Corp. ("ISN") in an appraisal action brought by two minority shareholders following the merger of ISN with its wholly-owned subsidiary.

DCF 52

DCF Discounted Cash Flow Utilities Valuation 52

Shearman & Sterling

FEBRUARY 3, 2021

based on a discounted cash flow analysis ("DCF"). On January 22, 2021, the Delaware Supreme Court affirmed en banc the Delaware Court of Chancery's decision appraising outsourcing and financial services company SourceHOV Holdings, Inc. SourceHOV Holdings Inc. Manichaean Capital LLC, No. 215, 2020 (Del.

DCF 52

DCF DCF Analysis Discounted Cash Flow Financial Services 52

Francine Way

JULY 11, 2017

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

Valuation M&A DCF Financial Statement 130

Shearman & Sterling

NOVEMBER 7, 2017

On October 30, 2017, the Delaware Supreme Court affirmed the decision of the Delaware Court of Chancery determining the fair value of ISN Software Corp. ("ISN") in an appraisal action brought by minority stockholders following the cash-out merger of ISN with its wholly-owned subsidiary, at the direction of its controlling stockholder.

DCF 40

DCF Discounted Cash Flow Mergers IT 40

Francine Way

JULY 10, 2017

The challenge is: the firm’s value is not obvious or available - there is not one “true” or “correct” firm value, as any valuation is based on unknowns (future performance and future cash flow). Do they have the cash of debt/equity capacity to bid aggressively? It is no different in M&A. It drives prices, ROI, and financing.

Valuation 130

Valuation M&A Equities Shares 130

Shearman & Sterling

DECEMBER 19, 2017

After a trial, the Court of Chancery had disregarded the deal price and instead applied its own discounted cash flow ("DCF") analysis, arriving at a valuation of $17.62 per share significantly undervalued the stock of Dell. In re Appraisal of Dell Inc., 565, 2016 (Del. per share reflecting an approximate 28% premium.

Discounted Cash Flow 52

Discounted Cash Flow DCF Private Equity Shares 52

How2Exit

FEBRUARY 27, 2023

Axial.com also provides a discounted cash flow model spreadsheet that makes it easier to identify certain financial information and plug it into the spreadsheet to build out the model. This spreadsheet is designed to be user-friendly and make the process of understanding discounted cash flow models easier.

Business 130

Business Sale Broker Discounted Cash Flow 130

Shearman & Sterling

JULY 25, 2017

Noting that the appraisal statute requires the exclusion of "any synergies present in the deal price," the Court evaluated the competing discounted cash flow ("DCF") analyses offered by the parties and adopted the $2.13 9042-VCL (Del. July 21, 2017). per share deal price. Read more

Discounted Cash Flow 52

Discounted Cash Flow DCF Corporation Mergers 52

How2Exit

FEBRUARY 23, 2023

It is believed that finding and pursuing one's Ikigai can lead to a sense of flow and happiness as well as improved physical and mental health. Ron Concept 1: Buy An Existing Business For Growth The idea of buying an existing business for growth is one that has been around for many years.

Business 130

Business Negotiation DCF Acquisitions 130

Shearman & Sterling

JANUARY 2, 2017

While the court conducted its own DCF (discounted cash flow) analysis drawing from expert submissions, Vice Chancellor Laster ultimately deferred entirely to the deal price, finding that the sale process was fair and based on meaningful competition in a well-functioning market, and thus generated reliable evidence of fair value.

Discounted Cash Flow 40

Discounted Cash Flow DCF Sale Capital 40

Shearman & Sterling

AUGUST 15, 2017

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

Discounted Cash Flow 52

Discounted Cash Flow Private Equity Shares Debt 52

Shearman & Sterling

MARCH 6, 2018

​On February 23, 2018, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery ruled, based on his own discounted cash flow ("DCF") analysis, that the fair value of AOL Inc. ("AOL") was below the deal price paid by Verizon Communications Inc. ("Verizon") to acquire it. Read more

DCF Analysis 40

DCF Analysis DCF Discounted Cash Flow Valuation 40

Shearman & Sterling

AUGUST 22, 2016

On August 11, 2016, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery relied on his own discounted cash flow ("DCF") analysis to determine the fair value of ISN Software Corp. ("ISN") in an appraisal action brought by two minority shareholders following the merger of ISN with its wholly-owned subsidiary.

DCF 40

DCF Discounted Cash Flow Utilities Valuation 40

Shearman & Sterling

FEBRUARY 3, 2021

based on a discounted cash flow analysis ("DCF"). On January 22, 2021, the Delaware Supreme Court affirmed en banc the Delaware Court of Chancery's decision appraising outsourcing and financial services company SourceHOV Holdings, Inc. SourceHOV Holdings Inc. Manichaean Capital LLC, No. 215, 2020 (Del.

DCF 40

DCF DCF Analysis Discounted Cash Flow Financial Services 40

Shearman & Sterling

MAY 1, 2018

As we highlighted previously, the Court of Chancery found no breach of fiduciary duties even under an entire fairness standard and determined that fair value of the shares amounted to $2.13, even though that price reflected nearly a 60% discount to the deal price. Petitioners also sought appraisal, asserting that the $5.00 Read more

Discounted Cash Flow 52

Discounted Cash Flow Negotiation Corporation Shares 52

Successful Acquisitions

SEPTEMBER 11, 2023

In M&A, normalized EBITDA is crucial for attaching a multiple and forecasting cash flows. Approaches to Valuation: There are three primary approaches to valuation: – Income Approach: Comprising capitalization of earnings and discounted cash flow methods, it focuses on earnings and future cash flows.

Valuation 64

Valuation Business Mergers and Acquisitions Discounted Cash Flow 64

Shearman & Sterling

DECEMBER 19, 2017

After a trial, the Court of Chancery had disregarded the deal price and instead applied its own discounted cash flow ("DCF") analysis, arriving at a valuation of $17.62 per share significantly undervalued the stock of Dell. In re Appraisal of Dell Inc., 565, 2016 (Del. per share reflecting an approximate 28% premium.

Discounted Cash Flow 40

Discounted Cash Flow DCF Private Equity Shares 40

Wizenius

MAY 14, 2023

Terminal Value The terminal value is an essential component of a discounted cash flow (DCF) analysis. The terminal value captures the long-term cash flow generating potential of the company and accounts for the assumption that a business will continue to operate and generate cash flows beyond the forecasted period.

DCF Analysis 52

DCF Analysis DCF Discounted Cash Flow Valuation 52

Sun Acquisitions

AUGUST 12, 2024

Traditional valuation methods, such as discounted cash flow analysis and comparable company analysis, may not adequately capture the value of digital assets. Assessing the scalability, reliability, and security of digital assets has become essential to mitigate risks and ensure the success of post-merger integration.

M&A 59

M&A Mergers and Acquisitions Valuation Discounted Cash Flow 59

Shearman & Sterling

JULY 25, 2017

Noting that the appraisal statute requires the exclusion of "any synergies present in the deal price," the Court evaluated the competing discounted cash flow ("DCF") analyses offered by the parties and adopted the $2.13 9042-VCL (Del. July 21, 2017). per share deal price. Read more

Discounted Cash Flow 40

Discounted Cash Flow DCF Corporation Mergers 40

Shearman & Sterling

AUGUST 15, 2017

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

Discounted Cash Flow 40

Discounted Cash Flow Private Equity Shares Debt 40

Wizenius

JUNE 12, 2023

Consider incorporating sensitivity analysis to understand the impact of changing market conditions on cash flows. Discounted Cash Flow (DCF) Analysis: DCF analysis is commonly used to value companies, even in volatile industries. Sum up the expected cash flows to determine the company's valuation.

DCF Analysis 52

DCF Analysis Discounted Cash Flow DCF Risk Assessment 52

Wizenius

JUNE 11, 2023

Discounted Cash Flow (DCF) models can be adjusted by incorporating inflation rates and currency exchange rate assumptions into cash flow projections. Adjust Financial Statements for Inflation: Normalize historical financial statements by adjusting for the effects of inflation.

Financial Modeling 52

Financial Modeling Financial Models Financial Statement Discounted Cash Flow 52

Shearman & Sterling

MAY 1, 2018

As we highlighted previously, the Court of Chancery found no breach of fiduciary duties even under an entire fairness standard and determined that fair value of the shares amounted to $2.13, even though that price reflected nearly a 60% discount to the deal price. Petitioners also sought appraisal, asserting that the $5.00 Read more

Discounted Cash Flow 40

Discounted Cash Flow Negotiation Corporation Shares 40

MergersCorp M&A International

NOVEMBER 1, 2024

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. Here’s a detailed examination of how to value an AMC. Understanding Key Financial Metrics The first step in valuing an AMC is to analyze its financial performance.

Asset Management 52

Asset Management Management Valuation Discounted Cash Flow 52

Peak Frameworks

JUNE 7, 2023

Understanding the Cash Flow Statement The cash flow statement provides a comprehensive picture of a company's cash inflows and outflows. It's broken down into three sections: Operating, Investing, and Financing cash flows. For instance, in 2020, IBM reported solid net income.

Financial Analysis 52

Financial Analysis Discounted Cash Flow DCF Finance 52

Sun Acquisitions

OCTOBER 13, 2023

Income-Based Valuation The income-based valuation method focuses on the target company’s ability to generate future cash flows and assesses the present value of these cash flows. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation Mergers Acquisitions 59

Wizenius

JUNE 5, 2023

Highlight your experience in performing company valuations using various methods, such as discounted cash flow (DCF) analysis, comparable company analysis, or precedent transactions. In the highly competitive field of investment banking, a well-crafted resume can be the key to landing coveted interview opportunities.

Investment Banking 52

Investment Banking Banking Bank Investment 52

Peak Frameworks

MAY 2, 2024

Valuation Techniques: Employing discounted cash flow (DCF) and comparative analysis to ascertain the target’s value. If you're interested in breaking into finance, check out our Private Equity Course and Investment Banking Course , which help thousands of candidates land top jobs every year.

Mergers 52

Mergers Mergers and Acquisitions Financial Analysis Discounted Cash Flow 52

Sun Acquisitions

NOVEMBER 17, 2023

Discounted Cash Flow (DCF): DCF is a fundamental valuation method that estimates the present value of a company’s future cash flows. It involves forecasting cash flows and applying a discount rate. It ensures a smooth transition and the realization of synergies.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation M&A Mergers 59

Midaxo

APRIL 25, 2023

Introduction This article showcases how ChatGPT can serve as an effective M&A consultant by demonstrating how it can be used to help develop a best practices-based M&A playbook. An M&A playbook is a comprehensive framework that guides an organization’s M&A activities from start to finish.

M&A 130

M&A Consulting Mergers and Acquisitions Valuation 130

Software Equity Group

FEBRUARY 26, 2024

DCF: Discounted Cash Flow Estimates a company’s value and forecasts future cash flow by incorporating the time value of money. It is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

Focus Investment Banking

APRIL 7, 2024

This can lead to a more cautious approach from PE firms, as higher rates can impact the future cash flows and growth prospects of potential investment targets. Discounted Cash Flow (DCF) Analysis: This is the most common valuation method involving discounting future cash flows back to their present value.

Private Equity 52

Private Equity Valuation Equities Business 52

Wizenius

JUNE 28, 2023

One critical aspect is determining the appropriate growth rate for the perpetual growth phase in a Discounted Cash Flow (DCF) model. Valuation is a complex art that requires a deep understanding of financial modeling and various influencing factors.

DCF 52

DCF Financial Modeling Financial Models Discounted Cash Flow 52

Successful Acquisitions

MARCH 2, 2023

Still another potential problem is that sometimes we must use public company data and then discount the results because the subject company is private. Most analysts use a combination of methods when determining value so it helps to be familiar with some of the basic approaches when contemplating a transaction.

Valuation 52

Valuation Discounted Cash Flow DCF M&A 52

Devensoft

JUNE 20, 2023

Valuation methods can include discounted cash flow analysis, comparable company analysis, and precedent transaction analysis. Corporate development through mergers and acquisitions (M&A) is an increasingly popular strategy for companies seeking to drive innovation and growth opportunities.

M&A 52

M&A Corporation Mergers and Acquisitions Mergers 52

RKJ Partners

AUGUST 6, 2017

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.

M&A 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40