20 years: M&A
Valuations are undertaken to determine how much an asset or a company is worth either today or in the future. Jo explains how to approach these valuations and the key metrics typically used to assess a company’s value.
Valuations are undertaken to determine how much an asset or a company is worth either today or in the future. Jo explains how to approach these valuations and the key metrics typically used to assess a company’s value.
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10 mins 35 secs
Valuations are undertaken to determine how much an asset or company is worth and are conducted for a number of purposes: acquisitions, sales (including IPOs), joint ventures, liquidations, for taxation and financial reporting. Knowing the valuation’s purpose, whose perspective it is being conducted from and its premise (e.g. is the company a going concern, is it for liquidation or fire sale) is key. Introducing the ‘market valuations’ and ‘comparable company trading multiples’ valuation methods.
Key learning objectives:
Explain the ‘market valuations’ methodology and which companies it is best suited to
Explain the ‘comparable company trading multiples’ method, its applications, pros and cons?
Define valuations
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.