Mergers & Acquisitions (M&A) Valuation Methodologies II
In the second part of Jo's video on valuations, she discusses various valuation methods, including precedent transaction multiples, discounted cashflows (DCF), leveraged buyouts (LBO) and sum-of-the parts.
Overview
Introducing the ‘precedent transaction multiples’, ‘discounted cash flow’, ‘leveraged buyout’ and ‘sum-of-the-parts’ methods to value companies or businesses.
Key learning objectives:
Explain the ‘precedent transaction multiples’ method, its pros and cons
Explain the discounted cashflow (DCF) valuation method and its limitations
Explain the Leveraged Buyout (LBO) valuation method, which companies it is best suited to and the key components of the analysis
Explain the sum-of-the-parts valuation method
Summary
Expert
Josephine Tan
Josephine has spent the last 20 years working in corporate finance in a number of different roles – as an investment banker, corporate adviser, private equity investor and in publicly listed companies. More recently, Josephine has been leading the corporate finance function of a publicly listed mining company.
