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

Valutico

Income-based methods such as Discounted Cash Flow analysis focus on future cash flows to determine value. These multiples, derived from the market values of comparable companies, are adjusted to account for differences in capital structure, growth rates, and other factors.

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M&A Terms Every Business Owner Should Know

Class VI Partner

Common Equity Common Equity (sometimes also referred to as Common Stock) reflects the value of a company’s assets minus its liabilities minus any Preferred Equity that would have preference over the Common Equity. It is typically the highest risk/highest potential return portion of a company’s capital structure.