Software Equity Group

MAY 7, 2024

But what are the key influences shaping valuation multiples in today’s M&A deals? As you contemplate your exit strategy, it becomes increasingly crucial to understand the external factors driving the valuation of your SaaS company. It’s important to remember that no key metric exists in a vacuum.

M&A 52

M&A Valuation Economics Business 52

Lake Country Advisors

AUGUST 8, 2024

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. It’s integral to ensuring that the sale benefits all stakeholders and should be one of your priorities before advertising it to potential buyers.

Valuation 97

Valuation Discounted Cash Flow S&P DCF Analysis 97

Mergers and Inquisitions

MAY 3, 2023

To be fair, in some industries – like commercial banks and insurance within FIG – the DDM is a core valuation methodology. The main argument in favor of the DDM is that it best represents what happens in real life when you buy a stock. Also, the Terminal Value is normally based on a P / E multiple or a Net Income Growth Rate.

Valuation 64

Valuation DCF Debt Financial Modeling 64

Francine Way

JULY 12, 2017

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. Calculate the Equity Value and the per-share Equity Value - this number would serve as the base case share price valuation.

Discounted Cash Flow 130

Discounted Cash Flow Valuation M&A DCF 130

FineMark

JANUARY 17, 2024

This Christmas, Santa’s Route Included a Stop on Wall Street At year end, the stock market rallied sharply and bond market performance was nothing short of breathtaking. The equity market also noted the Fed’s comments as investors piled back into equities and the S&P 500 finished the year up more than 26%.

S&P 52

S&P Equities Valuation Investment 52

Focus Investment Banking

JANUARY 18, 2024

stock markets are at or near their all-time highs. The S&P 500 has recently traded near 4800, close to its record at the end of 2021. If the stock market remains near all-time highs, it might just be too attractive to pass up. As 2024 starts, the U.S.

IPO 52

IPO Consulting Corporate Finance Professional Services 52

Mergers and Inquisitions

JANUARY 31, 2024

They might have separate teams for specific strategies or markets, but everything is run under a single Profit & Loss statement (P&L). There are very few real “requirements” besides the single PM / single P&L one above and the standard Limited Partner / General Partner structure that all hedge funds use.

Funds 59

Funds Management S&P Recruitment 59

Focus Investment Banking

OCTOBER 23, 2023

We know that the formula for valuing high cash-flowing businesses is a multiple applied to profitability, but with lower-margin businesses, it’s likely to be an asset-based valuation comprised of the A/R, inventory and equipment — hopefully with a bump for goodwill. This approach has several advantages: Diversification. Lower costs.

Funds 52

Funds S&P Investment Business 52

The TRADE

JUNE 23, 2023

That is the same level as the expected 12-month forward earnings yield across the S&P 500, which has risen by >15% since January. This could shift again the pendulum towards a more defensive positioning in which investors require higher valuation premium to get compensated on risk assets.

Equities 58

Equities Investors Funds Trading 58

Software Equity Group

MARCH 13, 2023

On the surface, things looked rough: the Dow Jones, S&P 500, and the NASDAQ all finished the year with significant losses, with tech stocks hit particularly hard. Median EV/TTM Revenue Multiple Down from 2021’s high of 7.3x, 2022’s median EV/Revenue multiple of 5.6x was only a slight decline from 2020’s 5.7x

M&A 52

M&A Private Equity Equities S&P 52

Sica Fletcher

JUNE 20, 2024

PE firms rely on leveraged buyouts (LBOs) for the lion's share of their deals, which often involve using the acquired company’s assets as collateral to insure the loan used to purchase it. Conversely, when interest rates are high, valuations are supposed to decrease because buyers will try to make up what they are losing to interest.

M&A 52

M&A Insurance Valuation Equities 52

Sica Fletcher

MAY 29, 2024

2) our team noted unexpected increases in the valuation multiples offered for insurance agencies, as depicted below. Founders Michael Fletcher and Al Sica are two of the industry's leading dealmakers who have advised on over $16 billion in insurance agency and brokerage transactions since 2014.

M&A 52

M&A Insurance Equities S&P 52

Software Equity Group

JANUARY 8, 2024

Having a clear understanding of the broader software industry is one of several key insights to a successful transaction and a better SaaS valuation. It lists all 122 (as of this writing) companies in the SEG SaaS Index , along with stock price and ticker symbol.

Management 52

Management Stock Mergers and Acquisitions Business 52

Software Equity Group

JANUARY 8, 2024

Having a clear understanding of the broader software industry is one of several key insights to a successful transaction and a better SaaS valuation. It lists all 122 (as of this writing) companies in the SEG SaaS Index , along with stock price and ticker symbol.

Business 52

Business Management Stock Mergers and Acquisitions 52

Sica Fletcher

JULY 11, 2024

However, the brokerage's tech stack now handles many of these job functions, which significantly improves the bottom line and increases profitability. In this way, private companies, in particular, may benefit from not having an observable stock price. This means brokerages are generating more revenue now than ever before.

M&A 52

M&A Insurance Debt Equities 52

Mergers and Inquisitions

SEPTEMBER 20, 2023

Technical Questions – You could get standard questions about accounting and valuation or VC-specific questions about cap tables, key metrics in your industry, or how to value startups. A: As with hedge fund stock pitches , you need to research markets and companies and develop 2-3 solid ideas here.

Capital 59

Capital Valuation Investment Portfolio 59

Mergers and Inquisitions

MAY 24, 2023

They have their investment thesis and valuation, and the earnings announcement is the event that unlocks value… …but this is not what “event-driven” means in most cases. But even if the specific catalysts never materialize, the stock price might still increase by 20% or 30%. EBITDA multiple , matching its own.

Funds 64

Funds Investors Mergers and Acquisitions Mergers 64

Mergers and Inquisitions

MARCH 8, 2023

As the delivery date approaches, the underlying commodity’s price and its futures price converge. The Skills Required for Commodity Trading You do not use traditional financial statement analysis or valuation in commodity trading because the underlying asset is a futures contract , not a stock.

Funds 119

Funds Finance Finance Trading 119

InvestmentBank.com

JANUARY 14, 2021

WiMi Hologram Cloud (NASDAQ: WIMI ) was the first IPO after the S&P 500, NASDAQ, NYSE and Dow Jones Industrial Average reached their respective 52-week lows on March 20, 2020, but this proved only the beginning of IPOs in the Covid-era portion of 2020 [14]. billion in pre-valuation at the time of their IPO, a new record [11].

Capital 40

Capital IPO S&P Hospitality 40

Francine Way

JULY 8, 2017

Lack of financial / strategic progress: Shareholders’ frustration with the lack of growth of a company’s stock price / dividends / earnings per share / other financial metrics may drive exits. Peaked market valuations: When market cycle peaks or an industry fully matures, it may be advantageous for shareholders to cash out.

M&A 130

M&A Acquisitions Sale Investment 130

FineMark

JULY 13, 2023

The stark differences in index performance, specifically the effects of mega-cap technology listings and their disproportionately large weights in the S&P 500, are also worth highlighting. Some of this weightiness can be seen in the performance disparity to date between the S&P 500 and the Dow Jones Industrial Average.

S&P 52

S&P Bank Banking Investment 52

FineMark

OCTOBER 17, 2023

“ We have long felt that the only value of stock forecasters is to make fortune-tellers look good.” Equities and the S&P 500 At the onset of each new year, like clockwork, we’re asked for our near-term view. benchmark equity index, the S&P 500. With a current net worth of $115.7

S&P 52

S&P Investment Portfolio Corporation 52

Cooley M&A

JANUARY 20, 2022

While 2020’s M&A landscape was characterized by whiplash volatility from choppy deal activity in the first half of the year to a surge in volume in the second half, that momentum accelerated in 2021, with no signs of slowing down heading into 2022. on transactions over 2019’s mega?mergers. General trends in life sciences M&A.

M&A 40

M&A Mergers and Acquisitions Pharmaceutical Mergers 40

Cooley M&A

FEBRUARY 1, 2024

2023’s much-discussed downturn in mergers & acquisitions – with global M&A volume and value down 6% and 17%, respectively, from 2022 – was largely driven by the slowdown in the tech sector, with global tech M&A volumes down 51% year over year, while other sectors saw marked increases. [1]

M&A 59

M&A Mergers and Acquisitions Private Equity Equities 59

InvestmentBank.com

MAY 18, 2021

Government funded programs include Medicare, Medicaid, Children’s Health Insurance Program, and the Veterans Health Administration. Over the last year, the biotech industry has seen considerable growth compared to the S&P 500. How do business valuations differ in Healthcare and across its subsectors?

Healthcare 40

Healthcare M&A Valuation Hospitality 40