Mergers and Inquisitions

MAY 3, 2023

It can be useful for certain companies, such as power and utility firms and midstream (pipeline) operators in oil & gas … …but it’s also much harder to set up and use than a standard DCF. The basic set of steps looks like this: Step 1: Forecast Revenue and Expenses This is the same as in any other 3-statement model or DCF.

Valuation

Francine Way

JULY 14, 2017

Implied Transaction TEV = Implied Purchase Price + Debt + Preferred Stock + Minority Interest - Cash. Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.), We add the resulting number to Basic Shares Outstanding to get FD Shares Outstanding.

Valuation

OfficeHours

OCTOBER 17, 2023

Existing Debt The US is a country riddled with debt. Others may have car payments, mortgages, credit card debt, or other debt that could hang over their head as a large liability. Yes, I’m interested! No, I’m not Login or Subscribe to participate in polls.

Private Equity

Francine Way

JULY 19, 2017

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). For the purpose of our post, the output variables should be the per-share equity value returned from our DCF, Comparable Company, etc. Well, in the real world, there is no certainties in business.

Valuation

Francine Way

JULY 20, 2017

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).

Valuation

Mergers and Inquisitions

MAY 29, 2024

Project Finance Definition: “Project Finance” refers to acquisitions, debt/equity financings, and new developments of capital-intensive infrastructure assets that provide essential utilities and services. However, many people also use the term more broadly to refer to equity, debt, and advisory for infrastructure assets.

Corporate Finance

Mergers and Inquisitions

MARCH 13, 2024

Debt financing is much more common, and the GE firm is often the first institutional investor. Many of these firms use debt to fund deals, and they complete bolt-on acquisitions for portfolio companies. They do not use debt since they only make minority-stake investments. The targeted IRR might be in the 30 – 40% range.

Private Equity

Focus Investment Banking

APRIL 7, 2024

Cost of Leveraged Buyouts: PE firms often use leveraged buyouts (LBOs) to acquire companies, relying heavily on debt financing. Lower interest rates make this debt cheaper, enabling PE firms to execute more buyouts or bid higher for target companies. This market trend can raise the comparative value of similar businesses.

Private Equity

Wizenius

JUNE 25, 2023

The WACC considers the cost of debt and equity financing and reflects the risk associated with the company's capital structure. Adjustments for Negative Cash Flows: Incorporate adjustments in the DCF analysis to account for the negative cash flows in the initial years.

Financial Models

Wizenius

JUNE 5, 2023

Highlight your experience in performing company valuations using various methods, such as discounted cash flow (DCF) analysis, comparable company analysis, or precedent transactions. Highlight your involvement in structuring and executing successful fundraising strategies, such as equity offerings, debt issuances, or private placements.

Investment Banking

Mergers and Inquisitions

JANUARY 10, 2024

By contrast, investment banking is more about advising companies on transactions such as M&A deals , equity and debt deals , and restructuring. You will very rarely get exposed to the type of financial modeling that bankers complete: 3-statement models , DCF models , M&A models , LBO models , and so on. Wealth Management vs.

Investment Banking

Devensoft

AUGUST 22, 2023

As opposed to merely focusing on the market capitalization, which only accounts for the company’s equity value, the Enterprise Value Calculator considers the company’s debt, cash, and other financial liabilities. Discount Rates Discount rates are used in the DCF method to determine the present value of future cash flows.

Valuation

Mergers and Inquisitions

OCTOBER 18, 2023

or debt offerings (investment-grade or high-yield bonds). DCM Results: The company raised funding more quickly than expected or on better terms; it saved $XX in interest expense by refinancing at a favorable rate; it improved its leverage and coverage ratios via refinancing; it raised enough debt to meet an upcoming cash crunch.

Capital Market

Mergers and Inquisitions

NOVEMBER 1, 2023

PE firms view these companies as especially appealing since low multiples mean they can use higher debt percentages to fund the acquisitions. This deal works because SYNLAB can afford to take on a huge amount of Debt and can likely repay it quickly – since its EBITDA was depressed at the time of this acquisition.

Private Equity

RKJ Partners

AUGUST 6, 2017

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. The method assumes leveraging, whereby the cash flow of the company is used to pay-off the debt—ultimately building equity.

M&A

Mergers and Inquisitions

APRIL 19, 2023

Metals & Mining Investment Banking Definition: In metals & mining investment banking, professionals advise companies that find, produce, and distribute base metals, bulk commodities, and precious metals on debt and equity issuances and mergers and acquisitions. What Do You Do as an Analyst or Associate in the Group?

Investment Banking

Mergers and Inquisitions

JULY 19, 2023

Non-Equity Funds – Finally, it is difficult to “short” certain securities effectively, such as distressed debt and many types of credit (especially structured products ). Think: a deep review of companies’ financial statements, 3-statement models , and DCF-based valuations. hiring MDs to analyze biotech companies).

Funds

Mergers and Inquisitions

NOVEMBER 20, 2024

A: Unlike most PE deals, traditional growth equity deals do not use debt and are for minority stakes in companies, but they often have more “structure” via liquidation preferences and preferred stock. Q: Walk me through one of your deals and explain whether you would have invested in the debt or equity offering or acquired the company.

Private Equity