Valuation and Benchmarking Support
Valuation support in M&A (Mergers and Acquisitions) and Investment Banking (IB) outsourcing involves a range of services aimed at accurately determining the value of a company or asset. This is crucial for making informed investment decisions and negotiating deals. Here are the key valuation support services we provide to our M&A/IB clients:
Financial Analysis and Modeling
Creating detailed financial models that forecast future cash flows, revenues, expenses, and profitability. Utilizing historical financial statements to build projections and scenarios for different valuation methods.
DCF Valuation (Discounted Cash Flow)
Calculating the present value of expected future cash flows using a discount rate. Assessing the intrinsic value of a company based on its cash flow potential.
Comparable Company Analysis (Comps)
Identifying and analyzing publicly traded companies similar to the target company in terms of industry, size, and financial metrics. Using valuation multiples (such as P/E, EV/EBITDA) of comparable companies to estimate the target company's value.
Precedent Transaction Analysis
Analyzing past M&A transactions involving similar companies to derive valuation benchmarks. Applying transaction multiples to the target company's financials for valuation estimation.
LBO Analysis (Leveraged Buyout)
Evaluating the potential return on investment in a leveraged buyout scenario. Assessing the company's ability to service debt based on projected cash flows.
Sum of the Parts Valuation
Valuing individual business segments or assets of a conglomerate separately and then aggregating the values to estimate the overall company value.