Shearman & Sterling

FEBRUARY 3, 2021

based on a discounted cash flow analysis ("DCF"). On January 22, 2021, the Delaware Supreme Court affirmed en banc the Delaware Court of Chancery's decision appraising outsourcing and financial services company SourceHOV Holdings, Inc. SourceHOV Holdings Inc. Manichaean Capital LLC, No. 215, 2020 (Del.

DCF

Francine Way

JULY 13, 2017

As we have previously covered what are needed to complete these steps in our DCF discussion , I would refer to those steps (1 through 7) here. As we have previously covered what are needed to complete these steps in our DCF discussion , I would refer to those steps (9 through 12) here. They are basically the same for this exercise.

Valuation

Wizenius

APRIL 1, 2023

We can simply divide the value of equity proportionately amongst the claims to derive value per claim In case of start-ups/young firms, the fact that equity is raised from private investors as against issuing shares in public market results in non-standardized equity claims Putting it simply, agreements with equity investors in different rounds of (..)

DCF

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

Wizenius

JUNE 28, 2023

One critical aspect is determining the appropriate growth rate for the perpetual growth phase in a Discounted Cash Flow (DCF) model. Conclusion: Determining growth rates for the perpetual growth phase of a DCF model requires a holistic assessment of macroeconomic factors, industry dynamics, competitive landscapes, and regulatory environments.

DCF

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. The ones listed above are my go-to tools and sources.

Valuation

Shearman & Sterling

FEBRUARY 3, 2021

based on a discounted cash flow analysis ("DCF"). On January 22, 2021, the Delaware Supreme Court affirmed en banc the Delaware Court of Chancery's decision appraising outsourcing and financial services company SourceHOV Holdings, Inc. SourceHOV Holdings Inc. Manichaean Capital LLC, No. 215, 2020 (Del.

DCF

How2Exit

FEBRUARY 23, 2023

Watch E#84 Here Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit crude, you're reading our notes, so. It is a great way to get started in business without having to start from scratch.

Business

Francine Way

JULY 18, 2017

Projected Book Value of Equity at the end of the 15 years = from the proforma balance sheet that we developed in our DCF post. Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.), Forecasting dividend amounts during the forecast horizon, as well as their present values.

Valuation

Wizenius

APRIL 8, 2023

Equity Value (today) = Equity Value at end of forecast period/ (1+Target rate of Return)^n 4) Because this is the valuation of the start-up before the VC invests his/her money in the business it is known as Pre-Money Valuation of the start-up 5) VC investors receive an equity share of the business in exchange for their investments.

DCF

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. In re: Appraisal of AOL Inc.,

DCF Analysis

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

Shearman & Sterling

NOVEMBER 7, 2017

See Shearman & Sterling LLP, Delaware Chancery Court Utilizes DCF Method To Determine Fair Value Of ISN Software Corp., In re ISN Software Corp. Appraisal Litig., 8388-VCG (Del.

DCF

Francine Way

JULY 14, 2017

Because this step is similar in this method as it is in the other valuation methods (DCF, Comparable Company, etc.), Comparing the proposed transaction’s implied multiples and control premium to that of the market’s to make sure that they are sensible. Performing sensitivity / scenario analysis using Monte Carlo analysis.

Valuation

Private Equity Info

JANUARY 25, 2024

While the discounted cash flow (DCF) methodology is the most rigorous and financially sound for business valuation, it does have several significant limitations, namely:

Discounted Cash Flow

Francine Way

JULY 19, 2017

Thus far, we have discussed five valuation methods: DCF, Comparable Company, Precedent Transaction, LBO, and Dividend Discount Model (DDM). In all of these discussions, we assumed a set of static values for our variables. In other words, we assumed that each variable can have only one value. WACCs and EBITDA multiples.

Valuation

Lake Country Advisors

AUGUST 8, 2024

Accurate and appropriate valuation is one of the pillars of maximizing the profits from a business sale. It’s integral to ensuring that the sale benefits all stakeholders and should be one of your priorities before advertising it to potential buyers. However, company valuation isn’t as simple as slapping a price on your business.

Discounted Cash Flow

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. TONIGHT ONLY: $99 Buyside Starter Kit Use code BUYSIDESTARTER for $900 OFF! Generally $999, ONLY $99 TONIGHT! NOW is the time to prepare!

Discounted Cash Flow

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). The 1st one for today is the Tangible Book Value (TBV) method.

Valuation

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 17, 2017

It is worth noting at this junction that the debt-interest schedule, specifically the revolver portion of it, functions as a plug to the 3-statement model; very similar to the plugs we used in DCF a while back. Compiling a summary of relevant financial statistics to illustrate key financial metrics during the holding period.

Valuation

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. However, most companies have a longer lifespan and continue to generate cash flows well beyond that period.

DCF Analysis

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

Wizenius

JUNE 12, 2023

Discounted Cash Flow (DCF) Analysis: DCF analysis is commonly used to value companies, even in volatile industries. Here are some key considerations and approaches to valuing such a company: 1. Risk Assessment: Start by conducting a thorough risk assessment of the company and the industry it operates in.

DCF Analysis

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. DCF provides an intrinsic value perspective, considering the target company’s unique financial characteristics. It ensures a smooth transition and the realization of synergies.

Mergers and Acquisitions

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 . ("Dell") by its CEO and founder, Michael Dell, and affiliates of a private equity firm, Silver Lake Partners ("Silver Lake"), at $13.75

Discounted Cash Flow

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 9042-VCL (Del. July 21, 2017). per share deal price. Read more

Discounted Cash Flow

MergersCorp M&A International

NOVEMBER 1, 2024

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. Here’s a detailed examination of how to value an AMC. Understanding Key Financial Metrics The first step in valuing an AMC is to analyze its financial performance.

Asset Management

OfficeHours

OCTOBER 17, 2023

If you’re in your 20s, you have probably thought about saving, investing, or retirement in some way. Even though it may seem far off, it’s never too early to start seriously thinking about how much you are saving and how you can make your money work for you in an effective way that requires little time or effort on your end.

Private Equity

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. Cash Flow from Operations in Valuation Models Valuation models such as the Discounted Cash Flow (DCF) model use CFO as a key input. For instance, in 2020, IBM reported solid net income.

Financial Analysis

Sun Acquisitions

OCTOBER 13, 2023

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. Asset-Based Valuation Asset-based valuation determines the worth of a company by considering its net asset value (NAV).

Mergers and Acquisitions

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

Mergers and Inquisitions

MARCH 13, 2024

Financial Modeling: Like private equity, 3-statement models are common, as are valuations and DCF models , but LBO models are less common since not all deals use debt. Others would counter that growth equity’s rapid ascent was mostly due to the easy money that persisted between 2008 and 2021. You could keep going and add plenty of names.

Private Equity

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 . ("Dell") by its CEO and founder, Michael Dell, and affiliates of a private equity firm, Silver Lake Partners ("Silver Lake"), at $13.75

Discounted Cash Flow

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. Understand the Company's Exposure: Assess the company's exposure to inflation and currency fluctuations by identifying its revenue sources, cost structure, and geographical presence.

Financial Modeling

Successful Acquisitions

MARCH 2, 2023

Value – The First Variable in Your Selling Equation By Brian Goodhart Value is the first variable in your selling equation and for good reason – it is the one talked about the most and the metric by which most people determine the success or failure of a deal. The first approach to valuation is the Asset Approach.

Valuation

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 9042-VCL (Del. July 21, 2017). per share deal price. Read more

Discounted Cash Flow