Shearman & Sterling

MARCH 6, 2018

​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. Read more

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DCF Analysis DCF Discounted Cash Flow Valuation 40

Shearman & Sterling

AUGUST 22, 2016

On August 11, 2016, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery relied on his own discounted cash flow ("DCF") analysis to determine the fair value of ISN Software Corp. ("ISN") in an appraisal action brought by two minority shareholders following the merger of ISN with its wholly-owned subsidiary.

DCF 40

DCF Discounted Cash Flow Utilities Valuation 40

Wizenius

MAY 14, 2023

Terminal Value The terminal value is an essential component of a discounted cash flow (DCF) analysis. It represents the value of a business or an investment beyond the explicit projection period used in the DCF model. Here are three widely used approaches: 1.

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DCF Analysis Discounted Cash Flow DCF Valuation 52

Wizenius

JUNE 12, 2023

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.

DCF Analysis 52

DCF Analysis Discounted Cash Flow Risk Assessment DCF 52

Shearman & Sterling

NOVEMBER 7, 2017

See Shearman & Sterling LLP, Delaware Chancery Court Utilizes DCF Method To Determine Fair Value Of ISN Software Corp.,

DCF 40

DCF Discounted Cash Flow Mergers IT 40

Shearman & Sterling

JANUARY 2, 2017

While the court conducted its own DCF (discounted cash flow) analysis drawing from expert submissions, Vice Chancellor Laster ultimately deferred entirely to the deal price, finding that the sale process was fair and based on meaningful competition in a well-functioning market, and thus generated reliable evidence of fair value.

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Discounted Cash Flow DCF Sale Stock 52

Peak Frameworks

MAY 2, 2024

Valuation Techniques: Employing discounted cash flow (DCF) and comparative analysis to ascertain the target’s value. Synergy Analysis Synergy analysis estimates the tangible benefits of the merger, including cost savings and potential revenue increases, playing a crucial role in justifying the transaction.

Mergers 52

Mergers Mergers and Acquisitions Financial Analysis Discounted Cash Flow 52

Sun Acquisitions

OCTOBER 13, 2023

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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Mergers and Acquisitions Valuation Mergers Acquisitions 59

How2Exit

FEBRUARY 23, 2023

Concept 6: Value Assets With DCF (Discounted Cash flow) One of the most important tools in the negotiation process is the discounted cash flow (DCF) method. The equation for the DCF method is CFT divided by T, where CFT equals cash flow in period T, and R equals discount rate.

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Business Negotiation DCF Acquisitions 130

Focus Investment Banking

APRIL 7, 2024

This can lead to a more cautious approach from PE firms, as higher rates can impact the future cash flows and growth prospects of potential investment targets. Discounted Cash Flow (DCF) Analysis: This is the most common valuation method involving discounting future cash flows back to their present value.

Private Equity 52

Private Equity Valuation Equities Business 52

Shearman & Sterling

JANUARY 2, 2017

While the court conducted its own DCF (discounted cash flow) analysis drawing from expert submissions, Vice Chancellor Laster ultimately deferred entirely to the deal price, finding that the sale process was fair and based on meaningful competition in a well-functioning market, and thus generated reliable evidence of fair value.

Discounted Cash Flow 40

Discounted Cash Flow DCF Sale Stock 40

Wizenius

JUNE 11, 2023

Discounted Cash Flow (DCF) models can be adjusted by incorporating inflation rates and currency exchange rate assumptions into cash flow projections. Evaluate Valuation Methods: Select appropriate valuation methods that account for the impact of inflation and currency fluctuations.

Financial Modeling 52

Financial Modeling Financial Models Financial Statement Discounted Cash Flow 52

Sun Acquisitions

NOVEMBER 17, 2023

Discounted Cash Flow (DCF): DCF is a fundamental valuation method that estimates the present value of a company’s future cash flows. It involves forecasting cash flows and applying a discount rate.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation M&A Mergers 59

Shearman & Sterling

DECEMBER 19, 2017

After a trial, the Court of Chancery had disregarded the deal price and instead applied its own discounted cash flow ("DCF") analysis, arriving at a valuation of $17.62 In re Appraisal of Dell Inc., 565, 2016 (Del. per share reflecting an approximate 28% premium.

Discounted Cash Flow 52

Discounted Cash Flow DCF Private Equity Shares 52

Francine Way

JULY 11, 2017

Discounted Cash Flow (DCF) i s 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. Information listed in the DCF analysis: See the items listed under DCF above.

Valuation 130

Valuation M&A DCF Financial Statement 130

Peak Frameworks

JUNE 7, 2023

Cash Flow from Operations in Valuation Models Valuation models such as the Discounted Cash Flow (DCF) model use CFO as a key input. It also plays a significant role in calculating Free Cash Flow to the Firm (FCFF) and Free Cash Flow to Equity (FCFE), both crucial metrics for valuation.

Financial Analysis 52

Financial Analysis Discounted Cash Flow DCF Valuation 52

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. Valuations: Demonstrate your expertise in valuations, as it is a fundamental skill for investment banking professionals.

Investment Banking 52

Investment Banking Bank Banking Investment 52

Shearman & Sterling

JULY 25, 2017

Noting that the appraisal statute requires the exclusion of "any synergies present in the deal price," the Court evaluated the competing discounted cash flow ("DCF") analyses offered by the parties and adopted the $2.13 per share deal price.

Discounted Cash Flow 52

Discounted Cash Flow DCF Corporation Mergers 52

Shearman & Sterling

DECEMBER 19, 2017

After a trial, the Court of Chancery had disregarded the deal price and instead applied its own discounted cash flow ("DCF") analysis, arriving at a valuation of $17.62 In re Appraisal of Dell Inc., 565, 2016 (Del. per share reflecting an approximate 28% premium.

Discounted Cash Flow 40

Discounted Cash Flow DCF Private Equity Shares 40

Shearman & Sterling

JULY 25, 2017

Noting that the appraisal statute requires the exclusion of "any synergies present in the deal price," the Court evaluated the competing discounted cash flow ("DCF") analyses offered by the parties and adopted the $2.13 per share deal price.

Discounted Cash Flow 40

Discounted Cash Flow DCF Corporation Mergers 40

Devensoft

AUGUST 22, 2023

The Enterprise Value Calculator incorporates various techniques, such as the discounted cash flow (DCF) method, market multiples, and comparable transactions analysis. EBITDA multiples allow you to assess a company’s earnings power and its ability to generate cash flows.

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Valuation M&A Utilities Mergers and Acquisitions 52

OfficeHours

MAY 19, 2023

A Few Reads to Digest Valuation Simplified: How Discounted Cash Flow Modeling Drives Financial Analysis Harness Discounted Cash Flow (DCF) modeling for financial analysis. Looking for additional 1-on-1 coaching? Fill this out and we’ll be in touch to connect you with one of our Top Coaches!

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Discounted Cash Flow Financial Analysis Accountant DCF 130

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. 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 40

M&A Valuation Mergers and Acquisitions Discounted Cash Flow 40

Software Equity Group

FEBRUARY 26, 2024

DCF: Discounted Cash Flow Estimates a company’s value and forecasts future cash flow by incorporating the time value of money. DCF is used when making investment decisions and understanding a business’s current and future value. CAGR can be used to compare your performance against industry averages.

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Discounted Cash Flow M&A Profitability S&P 52

Successful Acquisitions

MARCH 2, 2023

To account for this variability, valuation professionals will lean into the comparables they feel are closest and most accurate and discount or remove entirely those that seem unrealistic. The third and final approach that I’ll discuss is the Discounted Cash Flow (“DCF”) Approach.

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Valuation Discounted Cash Flow DCF M&A 52