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 40

DCF DCF Analysis Discounted Cash Flow Financial Services 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.

Discounted Cash Flow 52

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

Wizenius

MAY 14, 2023

Terminal Value The terminal value is an essential component of a discounted cash flow (DCF) analysis. The terminal value captures the long-term cash flow generating potential of the company and accounts for the assumption that a business will continue to operate and generate cash flows beyond the forecasted period.

DCF Analysis 52

DCF Analysis Discounted Cash Flow DCF Valuation 52

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 52

DCF Discounted Cash Flow Utilities 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

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

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. 11204-VCG.

DCF Analysis 40

DCF Analysis DCF Discounted Cash Flow Valuation 40

Shearman & Sterling

JULY 18, 2016

The judicially-determined appraisal value reflects an equally weighted blend of (1) a discounted cash-flow analysis, (2) a comparable company analysis, and (3) the actual transaction price of the deal. In re Appraisal of DFC Global Corp., 10107-CB (Del. July 8, 2016). Read more

Private Equity 40

Private Equity Discounted Cash Flow Corporation Equities 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.

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

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

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 per share significantly undervalued the stock of Dell. 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

Shearman & Sterling

AUGUST 15, 2017

per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. The Court of Chancery had calculated a fair value of $10.30 per share, 8.4% higher than the deal price of $9.50

Discounted Cash Flow 52

Discounted Cash Flow Private Equity Shares Debt 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

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.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation Mergers Acquisitions 59

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

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. It is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis.

Discounted Cash Flow 52

Discounted Cash Flow M&A Profitability S&P 52

Shearman & Sterling

NOVEMBER 7, 2017

As discussed in our post regarding the Court of Chancery's August 11, 2016 decision, the Court rejected the various methodologies advanced by the parties' competing experts and, instead, conducted its own discounted cash flow analysis to arrive at the "fair value" of ISN, which Vice Chancellor Glasscock determined was $357 million, (..)

DCF 40

DCF Discounted Cash Flow Mergers IT 40

Shearman & Sterling

MAY 1, 2018

As to the appraisal finding, the Court of Chancery explained that the appraisal statute requires the exclusion of "any synergies present in the deal price" and was persuaded by the discounted cash flow analysis offered by defendants' expert. Read more

Discounted Cash Flow 52

Discounted Cash Flow Negotiation Corporation Shares 52

Successful Acquisitions

SEPTEMBER 11, 2023

Approaches to Valuation: There are three primary approaches to valuation: – Income Approach: Comprising capitalization of earnings and discounted cash flow methods, it focuses on earnings and future cash flows.

Valuation 64

Valuation Business Discounted Cash Flow S&P 64

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 per share significantly undervalued the stock of Dell. 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

AUGUST 15, 2017

per share, by giving equal weight to: (1) the deal price, (2) a comparable companies analysis, and (3) a discounted cash flow analysis. The Court of Chancery had calculated a fair value of $10.30 per share, 8.4% higher than the deal price of $9.50

Discounted Cash Flow 40

Discounted Cash Flow Private Equity Shares Debt 40

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. Valuation is a complex art that requires a deep understanding of financial modeling and various influencing factors.

DCF 52

DCF Financial Modeling Financial Models Discounted Cash Flow 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 40

Discounted Cash Flow DCF Corporation Mergers 40

Peak Frameworks

JUNE 7, 2023

Return on Investment (ROI) - Investors often use CFO to calculate ROI as it reflects a firm's ability to generate cash, a key indicator of a solid investment. Cash Flow from Operations in Valuation Models Valuation models such as the Discounted Cash Flow (DCF) model use CFO as a key input.

Financial Analysis 52

Financial Analysis Discounted Cash Flow DCF Valuation 52

Shearman & Sterling

MAY 1, 2018

As to the appraisal finding, the Court of Chancery explained that the appraisal statute requires the exclusion of "any synergies present in the deal price" and was persuaded by the discounted cash flow analysis offered by defendants' expert. Read more

Discounted Cash Flow 40

Discounted Cash Flow Negotiation Corporation Shares 40

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. The purchase prices and multiples paid in those deals determine the target’s value.

Mergers and Acquisitions 59

Mergers and Acquisitions Valuation M&A Mergers 59

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. I will discuss general tools and credible sources of information that a valuation professional can use for the analysis.

Valuation 130

Valuation M&A DCF Financial Statement 130

How2Exit

FEBRUARY 27, 2023

Axial.com also provides a discounted cash flow model spreadsheet that makes it easier to identify certain financial information and plug it into the spreadsheet to build out the model. This spreadsheet is designed to be user-friendly and make the process of understanding discounted cash flow models easier.

Business 130

Business Sale Broker Discounted Cash Flow 130

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. This method is used to value assets by estimating the future cash flows they are expected to generate and discounting them back to present value.

Business 130

Business Negotiation DCF Acquisitions 130

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.

Valuation 52

Valuation Discounted Cash Flow DCF M&A 52

Sica Fletcher

MAY 8, 2024

seller's discretionary earnings, discounted cash flow), they are so rarely used in insurance M&A that we do not include them here. Insurance agency M&A is conducted using a multiple of one of the following: Although there are other methods of valuing an insurance agency (e.g., hidden behind a paywall or b.)

Insurance 52

Insurance M&A Valuation Advisory 52

Francine Way

JULY 10, 2017

These concepts will be very important in the next few posts as we discussed the specifics of different valuation methods such as Discounted Cash Flows, Comparable Company, Precedent Transaction, Dividend Discount Model, and more. We have also discussed the differences between equity value and enterprise value.

Valuation 130

Valuation M&A Equities Shares 130

Devensoft

JUNE 20, 2023

Valuation methods can include discounted cash flow analysis, comparable company analysis, and precedent transaction analysis. Assessing the Value of M&A Targets Once potential targets are identified, the next step is to assess their value.

M&A 52

M&A Corporation Mergers and Acquisitions Mergers 52

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

Midaxo

APRIL 25, 2023

Establish a valuation methodology : Choose the valuation methods that best suit your company and target industry, such as discounted cash flow, comparable company analysis, or precedent transactions. This will help you determine the appropriate value for potential targets.

M&A 130

M&A Consulting Mergers and Acquisitions Valuation 130