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M&A Blog #22 – valuation (less known valuation methods)

Francine Way

Thus far, we have covered four popular valuation methods in M&A (DCF, Comparable Company, Precedent Transaction, and LBO) and one less known one that is making its way out of the academic realm into the business world (Dividend Discount Method, DDM). The lease origination business is valued at a multiple of upfront fees less costs.

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What is Cash Flow from Operations (CFO)?

Peak Frameworks

Operating cash flow, or cash flow from operations, stands at the core, revealing how much cash the company generates from its core business operations. This is the heart of any business; without positive operational cash flow, a company will inevitably struggle.

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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Mergers and Inquisitions

Growth Equity Definition: In traditional growth equity, firms invest minority stakes in companies with proven business models that need the capital to expand; some firms also use “growth buyout” strategies, which are like traditional leveraged buyouts but with higher growth potential.

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Vertical Merger Integration: Definition, Legal, and Regulatory Considerations

Peak Frameworks

Notable Examples Several high-profile vertical mergers have reshaped industries, such as the acquisition of Pixar by Disney , integrating content creation with distribution channels, and Amazon’s purchase of Whole Foods , linking retail distribution with a leading online platform.

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Infrastructure Investment Banking: Definitions, Deals, and a Dizzying Diversity of Verticals

Mergers and Inquisitions

And the answer is maybe consumer retail , FIG , and most of tech and TMT ? Infrastructure includes select verticals from many other groups, but not entire other groups: For example, in real estate, data center, cell tower, and fiber infrastructure REITs are considered infrastructure, but hotel and retail REITs are not.

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The Search Fund Internship: Perfect Pathway into Investment Banking and Private Equity Roles?

Mergers and Inquisitions

You can think of a search fund as a private equity firm meets a SPAC , minus the celebrity sponsor who’s there to swindle retail investors. Because search funds raise little capital to acquire these small businesses, most search fund internships are unpaid. Your chances of doing substantial work increase if you’re the only intern.

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Metals & Mining Investment Banking: The Full Guide to Ground Zero for the Energy Transition

Mergers and Inquisitions

Aside from that, banks look for the same criteria as always: a high GPA, a good university or business school , previous internships, and networking and interview preparation. Valuation , such as the different multiples used for mining companies and the NAV model in place of the DCF (see below).