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Best Practices for Due Diligence and Valuation in M&A

Sun Acquisitions

Operational Due Diligence: Evaluate the company’s operations, including its supply chain, manufacturing processes, and customer relationships. Common Valuation Methods: Comparable Company Analysis: Compare the target company to similar publicly traded companies. 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. DCF is particularly useful for valuing startups or companies with predictable cash flow patterns.

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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique. DCF involves estimating future cash flows and applying a discount rate to bring those future cash flows to their present value.

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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. An example of this is a conglomerate, which might be involved in consumer products, financial services, and manufacturing.

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