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The Unseen Hand: Tariffs and Their Profound Consequences on Mergers & Acquisitions

MergersCorp M&A International

In an era marked by increasing geopolitical tensions and a re-evaluation of global trade relationships, tariffs have re-emerged as a potent tool of economic policy. This increased risk can lead to a higher weighted average cost of capital (WACC) for the target, further reducing its discounted cash flow (DCF) valuation.

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Infrastructure Investment Banking: Definitions, Deals, and a Dizzying Diversity of Verticals

Mergers and Inquisitions

Transportation & Logistics Representative Public Companies: Abu Dhabi Ports Company PJSC, Adani Ports and Special Economic Zone, Aena S.M.E., DCF: Deducts the full Interest Expense and deducts only Maintenance CapEx. FFO: Deducts the full Interest Expense but does not deduct any CapEx.

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Factors impacting Perpetual Growth Rate in a DCF

Wizenius

One critical aspect is determining the appropriate growth rate for the perpetual growth phase in a Discounted Cash Flow (DCF) model. Macroeconomic Factors: The global economic landscape can significantly impact growth rates. Real-world examples from various geographies highlight the intricate nature of growth rate assumptions.

DCF
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M&A Blog #15 – valuation (tools and data preparation)

Francine Way

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. A 5- or 10- year historical data is preferable.

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Evaluating Asset Management Companies: Key Metrics and Methodologies

MergersCorp M&A International

Discounted Cash Flow (DCF) Analysis: A DCF model is often used to estimate the intrinsic value of the company based on projected future cash flows. Key metrics used include Price/Earnings (P/E) ratios, Price/AUM ratios, and enterprise value ratios (EV/EBITDA). An AMC with a strong compliance track record is often viewed favorably.

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10-17-2023 Newsletter: How Much Money Should You Have Saved by 30?

OfficeHours

Other investments may be more protected from economic impacts and can help with diversification. So you want to pursue a role in Investment Banking/Lateral Banking?

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Wealth Management vs. Investment Banking: Career Deathmatch

Mergers and Inquisitions

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. ” Interviews are broader than IB interviews and require knowledge of asset allocation, economics, and and financial markets, but far less specific technical knowledge.