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Best Practices for Due Diligence and Valuation in M&A

Sun Acquisitions

Assess the company’s financial performance, including revenue, profitability, and cash flow. Operational Due Diligence: Evaluate the company’s operations, including its supply chain, manufacturing processes, and customer relationships. Identify any potential financial risks or liabilities.

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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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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

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.

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

RKJ Partners

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