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Best Practices for Due Diligence and Valuation in M&A

Sun Acquisitions

Due diligence and valuation are critical to any successful merger and acquisition (M&A) deal. Valuation: Determining the Fair Valu e Valuation is the process of determining a company’s fair market value. Accurate valuation is essential for successful M&A deals.

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Delaware Supreme Court Affirms Delaware Court Of Chancery's Use Of Its Own DCF Method To Determine Fair Value After Controller-Directed Cash-Out Merger

Shearman & Sterling

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

DCF
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Carried Interest Appraisals: A Guide to Valuation Methods & Allocations

PCE

However your fund is structured, the importance of proper valuation and allocation cannot be overstated, as an improperly done appraisal can cause you millions in unanticipated tax liabilities.

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

MergersCorp M&A International

For businesses contemplating strategic transactions, tariffs introduce a complex web of financial, operational, and legal considerations that can fundamentally alter deal viability, valuation, and post-merger integration. Understanding these consequences is paramount for navigating the contemporary M&A environment.

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Equity Research vs. Investment Banking: Careers, Compensation, Exits, and AI/Automation Risk

Mergers and Inquisitions

At the junior levels , entry-level professionals in both fields spend a lot of time in Excel working on models, valuations, and documents such as equity research reports and investment banking pitch books. Equity research at the senior levels does require sales skills, but its more about being a conduit than a closer.

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

Mergers and Inquisitions

DCF: Deducts the full Interest Expense and deducts only Maintenance CapEx. They also serve different purposes; CFADS is used for debt sizing and sculpting , while FFO and DCF are more useful for determining Dividends in the period. FFO: Deducts the full Interest Expense but does not deduct any CapEx.

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M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

As I mentioned in my last post, Discounted Cash Flow (DCF) is 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. The major steps of DCF are: Identify extraordinary, unusual, non-recurring items from the target’s 10-Ks and 10-Qs.