Chris Mercer

JULY 15, 2022

While a growing number of appraisers use a discounted cash flow model to value illiquid minority interests of businesses ( 22% according to a recent Business Valuation Resources Survey ), the majority of appraisers continue to rely on restricted stock studies and pre-IPO studies in their marketability discount determinations.

Discounted Cash Flow 52

Discounted Cash Flow Terminal Value Dividends Appraisal 52

RNC

DECEMBER 20, 2023

Research the AI industry and competition to assess the company’s market position. Use DCF analysis to estimate the present value of future cash flows, considering growth rates, discount rates, and terminal values. Rapid tech and market changes challenge industry growth and competitive advantage predictions.

Technology 52

Technology Discounted Cash Flow Intangible Assets Comparable Company Analysis 52

Brian DeChesare

MAY 29, 2024

The term “Project Finance” at large banks refers to a group that operates like Debt Capital Markets or Leveraged Finance but for infrastructure rather than normal companies. What if market rates for electricity fall? the value of the target company’s core business operations in the deal).

Corporate Finance 59

Corporate Finance Finance Terminal Value EBITDA 59

Chris Mercer

NOVEMBER 15, 2022

Atticus Frank will present tomorrow and talk about why market multiples differ between and among industries. It is essential to normalize the earnings of operating companies when providing appraisals either at the financial control/marketable minority level or the nonmarketable minority level. These sessions are always lots of fun.

Business Valuation 52

Business Valuation Normalized Earnings EBITDA Terminal Value 52

BV Specialists

JANUARY 3, 2022

Business owners likely have particular ideas about the value of their company and how best to calculate it, given their experience and knowledge of their financial history, and understanding of the market and industry in which they operate. Market Approach. >The Asset Approach.

Appraisal 52

Appraisal Liquidation Value Net Present Value Intangible Assets 52

Equilest

DECEMBER 4, 2024

It estimates a company’s intrinsic value based on future cash flows, discounted back to their present value. Calculating terminal value. DCF assumes that the value of a business is inherently tied to its ability to generate cash in the future. Goodwill : The general reputation of the business in its market.

Intangible Assets 40

Intangible Assets Discounted Cash Flow Terminal Value Business Valuation 40

Chris Mercer

MARCH 7, 2024

The second and third musings address the issue of marketability discounts and conclude that it is not possible to comply with any valuation standards, whether USPAP or not, using only averages of restricted stock studies as a basis for “guessing” marketability discounts. The relevant pool of potential buyers, if any.

Dividends 52

Dividends Appraisal Terminal Value Business Valuation 52

Valutico

SEPTEMBER 13, 2023

Valuing a Small and Medium-sized Enterprise (SME) involves assessing the company’s financial performance, assets, market position, and growth potential. Discounted Cash Flow analysis), Market Approach (e.g. net asset value calculation). The three main methods for SME valuation are the Income Approach (e.g.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis Asset-based Approach Intangible Assets 52

Valutico

MAY 6, 2024

Different methods are used, like looking at market prices, predicting future profits, and evaluating assets. Some techniques include comparing companies in the market, estimating future cash flows, and assessing the value of tangible assets. to its market value.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Equilest

NOVEMBER 25, 2023

These examples cover a range of topics, including discounted cash flow (DCF) analysis, comparable company analysis (CCA), and market multiples. Continuous Learning in Valuation Given the dynamic nature of financial markets, continuous learning is essential for professionals in valuation.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Equilest

AUGUST 6, 2023

Key Concepts to Know: Before diving into the valuation techniques, it's important to understand concepts like the time value of money, risk and return trade-off, and the significance of growth rates. Various Approaches to Valuation: Valuation can be approached through three main methods - market-based, asset-based, and income-based valuation.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Precedent Transaction Analysis Comparable Company Analysis 40

Andrew Stolz

MAY 22, 2020

Invested Capital Growth (ICG), as defined by The Economic Times, is “the appreciation in the value of an asset over a period of time.” It is calculated by comparing the current value of a stock, sometimes known as the market value of an asset or investment, to the amount paid when you originally bought it.

Terminal Value 52

Terminal Value Dividends Marketability Equity 52

Valutico

AUGUST 10, 2023

As we proceed, we’ll simplify the complex SME valuation process, factoring in unique SME attributes such as inconsistent cash flows, reliance on a restricted client base, and constrained access to capital, which heavily influence their value. How to value an SME? What are the Key Valuation Methods Used for SMEs?

Discounted Cash Flow 52

Discounted Cash Flow Asset-based Approach Intangible Assets Business Valuation 52

Valutico

SEPTEMBER 19, 2022

One critical component of the terminal value is the perpetual growth rate. the value of all its shares added up). The perpetual growth rate is an assumption of the annual growth rate until the end of time. . inflation). For the UK, for example, the long-term inflation target is 2% whereas for South Africa it is 5%.

Business Valuation 78

Business Valuation EBIT EBITDA Discounted Cash Flow 78

Musings on Markets

FEBRUARY 2, 2023

The second is that barring the oil companies, whose revenues and margins ebb and flow with oil prices, the only firm on this list that generates double digit margins is Apple, which has been rewarded with the largest market capitalization of any company in the world. It was the reason that I argued at a $1.2

Start-ups 99

Start-ups Risk-free Rate Market Capitalization Risk Premium 99

Chris Mercer

AUGUST 1, 2022

Were also bigger and had higher market capitalizations and better operating performance, on average. Market Pricing and Restricted Stock Discounts. The next figure examines the offer amounts, size of the transactions, and market pricing of the dividend-paying restricted stock issuers. We make observations from the second figure.

Dividends 52

Dividends Appraisal Start-ups Marketability 52

Equidam

FEBRUARY 16, 2024

These are applied to compute the Terminal value in the DCF method with Multiple and the potential exit value in the VC method. 21.44 ↑ 2.14% Advertising & Marketing 10.55 34.85 ↑ 178.58% Financial & Commodity Market Operators & Service Providers 153.4 6.38 ↓ -29.42% Food Markets 9.04

EBITDA 59

EBITDA Terminal Value Banking Marketability 59

Brian DeChesare

SEPTEMBER 20, 2023

No Right or Wrong Answers – Some technical questions have correct answers, but many market and investment ones do not. Market and Investment Questions – Which startup would you invest in? Which market is attractive? Which markets should we avoid? Q: Tell me about the current IPO, M&A, and VC funding markets.

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Equilest

OCTOBER 22, 2023

The accuracy of these projections can be influenced by external factors and market conditions, making them inherently uncertain. Any inaccuracies in the inputs, such as revenue forecasts, discount rates, or terminal values, can lead to misleading valuations.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Precedent Transaction Analysis Comparable Company Analysis 40

Equidam

NOVEMBER 22, 2021

On the one hand, the market’s excess liquidity might be a factor. These are applied to compute the Terminal value in the DCF method with Multiple and the potential exit value in the VC method. Advertising & Marketing. Financial & Commodity Market Operators & Service. 5%. Food Markets.

EBITDA 52

EBITDA Banking Marketability Terminal Value 52

Equidam

FEBRUARY 8, 2023

These are applied to compute the Terminal value in the DCF method with Multiple and the potential exit value in the VC method. 20.99 ↓ -43% Advertising & Marketing 12.74 12.51 ↓ -32% Financial & Commodity Market Operators & Service † 30.92 ↔ 0% Food Markets 9.05 ↔ 0% Food Markets 9.05

EBITDA 40

EBITDA Terminal Value Banking Marketability 40

Brian DeChesare

AUGUST 10, 2022

Oil & Gas Investment Banking Definition: In oil & gas investment banking, professionals advise companies that search for, produce, store, transport, refine, and market energy on raising debt and equity and completing mergers and acquisitions. Also, there are few “independent” Downstream companies in major markets like the U.S.,

Banking 98

Banking EBITDA Dividends Equity 98

Brian DeChesare

APRIL 19, 2023

The sources of growth also matter; emerging markets’ infrastructure spending drove up metal consumption for a long time, but now there’s a rising demand in developed markets due to EVs and renewable energy. As a result, they operate in more of a global market, with fewer regional disparities. and Industrias Peñoles (Mexico).

Banking 52

Banking Start-ups Private Equity Firm Equity 52

Equidam

JANUARY 21, 2025

These are applied to compute the Terminal value in the DCF method with Multiple and the potential exit value in the VC method. 17.71 -18.24% Advertising & Marketing 11.94 12.43 -26.06% Financial & Commodity Market Operators & Service Providers 28.48 13.31 43.27% Food Markets 9.29

EBITDA 52

EBITDA Terminal Value Banking Marketability 52