Chris Mercer

FEBRUARY 23, 2024

Basic Valuation Review The Value of a Business The value of a business is the present value of all expected cash flows from the business (into perpetuity) discounted to the present at a discount rate reflective of the risks associated with achieving those cash flows. 1 – $925,055/$1,000,000).

Marketability 52

Marketability Terminal Value Dividends Discounted Cash Flow 52

Equidam

JULY 30, 2024

Specifically, in understanding the exit potential of a company, by applying a multiple to the terminal value (the last year’s projected EBITDA or revenue). In other words, the ends (like the possible exit values) can justify the means (a seemingly higher present-day valuation).”

EBITDA 69

EBITDA Terminal Value Marketability Equity 69

Brian DeChesare

MAY 29, 2024

Debt Usage and Terminal Value In a standard leveraged buyout model , the Debt funding is usually based on a multiple of EBITDA or a percentage of the Purchase Enterprise Value (i.e., the value of the target company’s core business operations in the deal).

Corporate Finance 59

Corporate Finance Finance Terminal Value EBITDA 59

BV Specialists

JANUARY 3, 2022

Under a “Capitalization of Earnings” approach, the appraiser will consider both historic and future income probability, based on a steady stream of revenue, and discount these streams to realize a net present value, while using appropriate rates of capitalization. Market Approach. >The

Appraisal 52

Appraisal Liquidation Value Net Present Value Intangible Assets 52

Equilest

DECEMBER 4, 2024

It estimates a company’s intrinsic value based on future cash flows, discounted back to their present value. Calculating terminal value. DCF assumes that the value of a business is inherently tied to its ability to generate cash in the future. Selecting an appropriate discount rate.

Intangible Assets 40

Intangible Assets Discounted Cash Flow Terminal Value Business Valuation 40

Equilest

NOVEMBER 25, 2023

The ability to communicate complex financial concepts, collaborate with team members, and present findings convincingly is highly valued in valuation roles. Definition: The Dividend Discount Model (DDM) is a valuation approach that establishes the fair value of a stock based on the present value of its anticipated future dividends.

Discounted Cash Flow 52

Discounted Cash Flow Dividends Enterprise Value Terminal Value 52

Valutico

SEPTEMBER 13, 2023

SMEs can present challenges with DCF due to limited historical financial data, unreliable information, inadequate financial forecasts, and difficulty in determining terminal value. SMEs, with their unique structures, present specific challenges that can significantly influence their value.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis Asset-based Approach Intangible Assets 52

Chris Mercer

MARCH 7, 2024

The second section is called “General Principles,” where readers find a discussion of the concept of partial ownership interests, the wide range of possibilities that are raised when such interests, and guidance regarding the differences between valuing businesses versus interests in them.

Dividends 52

Dividends Appraisal Terminal Value Business Valuation 52

Brian DeChesare

APRIL 19, 2023

Here’s an example from the Capstone / Mantos Copper presentation below: Companies often go into detail on individual mines , with estimates for their useful lives, annual production, and “all-in sustaining costs,” or AISC. Again, there is no Terminal Value since you forecast production until the mines stop producing at viable levels.

Banking 52

Banking Start-ups Private Equity Firm Equity 52

Valutico

AUGUST 10, 2023

Discounted Cash Flow (DCF) Method: DCF, a method that calculates the present value of future cash flows, can be challenging to apply to SMEs due to data reliability and future projection issues. SMEs, with their unique structures, present specific challenges that can significantly influence their value.

Discounted Cash Flow 52

Discounted Cash Flow Asset-based Approach Intangible Assets Business Valuation 52

Equilest

AUGUST 6, 2023

Cash Flow Discounting: To determine the present value of future cash flows, discounted cash flow (DCF) analysis is employed, taking into account the time value of money.

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Precedent Transaction Analysis Comparable Company Analysis 40

Valutico

MAY 6, 2024

These methods, such as the Discounted Cash Flow (DCF) analysis, estimate the present value of expected future cash flows generated by the business and directly link valuation to the underlying financial performance of the enterprise. The future cash flows are then discounted back to their present value using a discount rate.

Discounted Cash Flow 52

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

Equilest

OCTOBER 22, 2023

By discounting expected future cash flows to present value, the DCF method enables investors, analysts, and companies to make informed decisions about buying or selling assets. This intrinsic value is the foundation upon which smart investment choices are made. How does the DCF method account for the time value of money?

Discounted Cash Flow 40

Discounted Cash Flow Business Valuation Precedent Transaction Analysis Comparable Company Analysis 40

Chris Mercer

MARCH 8, 2023

Fair Market Value Defined Fair market value occurs at the intersection of hypothetical negotiations between hypothetical willing, knowledgeable and able buyers and sellers. Therefore, in every fair market value determination prepared by business appraisers, it is critical that both buyers and sellers are present for the negotiation.

Fair Market Value 52

Fair Market Value Marketability Business Valuation Appraisal 52

Chris Mercer

AUGUST 1, 2022

It is the expectation of future returns that give present value to investments. There is no information in any restricted stock study to help business appraisers estimate the value of expected future dividends. And what about the terminal value that gives rise to capital appreciation? Refer to the initial figure.

Dividends 52

Dividends Appraisal Marketability Start-ups 52

Brian DeChesare

SEPTEMBER 20, 2023

For VC, your strengths should include points like “communication/presentation skills,” “networking ability,” and “being able to update your views quickly” (i.e., So, you could mention a related job, such as strategy, finance, or business development at a portfolio company, and say that you want to return to VC at a higher level eventually.

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Chris Mercer

MARCH 29, 2024

The value of an interest in a business is a function of the expected cash flows to the interest (which are derivative of the expected cash flows of the business itself, the growth of those cash flows, including a terminal value at the end of an expected holding period, and the risks associated with achieving those cash flows.

Marketability 52

Marketability Appraisal Business Valuation Dividends 52

Brian DeChesare

AUGUST 10, 2022

For a good example, check out the presentation for Chevron’s acquisition of Noble Energy : “BOE” is “Barrel of Oil Equivalent,” a metric used to convert the energy produced by natural gas into the energy produced by oil to make a proper comparison. Essentially, the NAV Model is a super-long-term DCF without a Terminal Value.

Banking 98

Banking Dividends EBITDA Equity 98

Chris Mercer

NOVEMBER 15, 2022

Four Mercer Capitalists are here in person, and three of us are presenting. Karolina Calhoun presented yesterday in two sessions on personal goodwill and on a litigation-oriented panel. Atticus Frank will present tomorrow and talk about why market multiples differ between and among industries. million is about $29.0 million.

Business Valuation 52

Business Valuation Normalized Earnings EBITDA Terminal Value 52

Equidam

APRIL 22, 2025

18] Value: Value represents the intrinsic, fundamental worth of the company. [17] 17] Ideally, it reflects the present worth of the future cash flows the business is expected to generate, or is based on other core attributes like assets, intellectual property, and market position. [17]

Discounted Cash Flow 64

Discounted Cash Flow Terminal Value Marketability EBITDA 64

Equidam

APRIL 22, 2025

.” De-Risking the Future: The Role of Current Traction, Team, and Milestones If valuation is about the future, what role does the present play? 4] [6] [14] [15] [16] [18] This present-day evidence serves a crucial function: it de-risks the future vision being presented to investors. Section 2: What Does Valuation Measure?

Discounted Cash Flow 52

Discounted Cash Flow Marketability Risk Premium Start-ups 52