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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

Market-based methods like Comparable Companies Analysis and Precedent Transactions Analysis offer relative measures of value based on market data. Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value. Excerpted from the book “Valuation for Mergers and Acquisitions” by Barbara S.

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How to value SMEs: A Simplified Roadmap

Valutico

Lastly, determining the continuity value (or terminal value) is a subjective process that often leads to disagreements. A common method is to use the company’s Price-to-Earnings Ratio (PER), but it can be challenging for SMEs due to the absence of a market.