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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.

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Best Practices for Due Diligence and Valuation in M&A

Sun Acquisitions

Common Valuation Methods: Comparable Company Analysis: Compare the target company to similar publicly traded companies. Precedent Transaction Analysis: Analyzes recent M&A transactions involving similar companies. Discounted Cash Flow (DCF) Analysis: Projects future cash flows and discounts them to their present value.

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Delaware Supreme Court Affirms Appraisal Ruling Relying On DCF Analysis To Determine Fair Value

Shearman & Sterling

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.

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Delaware Court Of Chancery Uses DCF Analysis To Arrive At Fair Value Below Deal Price, Even Though Deal Process Was Not "Dell Compliant"

Shearman & Sterling

​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.

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Methods and Examples on How to Value a Company

Lake Country Advisors

Discounted Cash Flow (DCF) Analysis Discounted Cash Flow (DCF) Analysis is a valuation method that estimates the value of a company based on its projected future cash flows, which are then discounted to their present value. million + $1.65 million + $2.25

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Delaware Supreme Court Affirms Appraisal Ruling Relying On DCF Analysis To Determine Fair Value

Shearman & Sterling

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
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How to value a company that operates in a highly volatile industry with unpredictable revenue

Wizenius

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.