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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

Mergers and acquisitions (M&A) play a vital role in shaping the business landscape, enabling companies to expand, diversify, and gain a competitive edge. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique.

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Methods and Examples on How to Value a Company

Lake Country Advisors

Precedent Transactions Analysis (PTA) Precedent Transactions Analysis (PTA) is a valuation method that analyzes the prices paid for similar companies in past mergers and acquisitions. First, list recent mergers and acquisitions in the healthcare sector involving companies similar to HealthCo.

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

RKJ Partners

For the purposes of this article, we will focus on valuation from the perspective of a merger and acquisition transaction, and specifically from the viewpoint of a buyer evaluating a business for sale. 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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Equity Research vs. Investment Banking: Careers, Compensation, Exits, and AI/Automation Risk

Mergers and Inquisitions

At the junior levels , entry-level professionals in both fields spend a lot of time in Excel working on models, valuations, and documents such as equity research reports and investment banking pitch books. On the other hand, IB beats it for deal-based hedge fund strategies, such as merger arbitrage and activist investing.