Valutico

MAY 6, 2024

Valuation in M&A refers to the process of determining the fair market value of a company being merged or acquired for guiding financial decisions and negotiation strategies in the transaction. These methods provide a relative measure of a company’s value and are widely used due to their market-based nature.

Discounted Cash Flow 52

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

Equidam

APRIL 22, 2025

with Section 409A) require companies to establish the Fair Market Value (FMV) of their common stock through a formal valuation process. [6] 23] Equidam uses country-specific risk-free rates (10-year government bonds) and market risk premiums (sourced from Damodaran). [23] Regulatory bodies (like the IRS in the U.S.

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64

Equidam

APRIL 22, 2025

11] The pricing often references the last primary round’s valuation or a formal 409A valuation, but negotiation considering company performance and market conditions is common. [11] 11] [12] Valuation is crucial here for pricing these existing shares. [11] 11] [13] Internal/Compliance (e.g., 2] [15] [17].

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52