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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

Market Capitalization Market capitalization is one of the simplest and most commonly used methods for valuing a publicly traded company. Example Scenario: Suppose XYZ Corp is a publicly traded technology company with 50 million shares outstanding, and the current share price is $20.

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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

This approach relies on analyzing the market value of comparable publicly traded companies, known as guideline companies or multiples. Discounted Cash Flow (DCF) analysis is a commonly used income-based valuation technique. Market-Based Valuation One widely used valuation technique in M&A is market-based valuation.

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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. Comparable Company Analysis: This analysis provides “relative” valuation.

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