4 ways to value a vompany — and which is highest
Learn the four main valuation methods—DCF, comps, precedents, and LBO. Understand how each works, when to use them, and which typically yields the highest valuation.| iBankingAdvice
Learn the four main valuation methods—DCF, comps, precedents, and LBO. Understand how each works, when to use them, and which typically yields the highest valuation.| iBankingAdvice
How are Private Equity funds structured? A private equity fund structure has multiple players. The general partner is the investment...| iBankingAdvice
What is commercial due diligence? Commercial due diligence processes evaluate a company's growth potential, competitive landscape,...| iBankingAdvice
What is a bolt-on acquisition? A bolt-on acquisition is an M&A strategy where a large company buys a smaller target company to expand its...| iBankingAdvice
Understanding buy and build strategies A buy-and-build strategy is a distinct approach to business growth and investment. Primarily...| iBankingAdvice
What is the secondary market? The secondary market is where investors trade existing securities. They do not buy securities from the...| iBankingAdvice
A working capital adjustment is a type of purchase price adjustment seen in the acquisition of a business. A buyer would demand a working...| iBankingAdvice
What is operating working capital? Operating working capital (OWC) measures a company's short-term financial health and operational...| iBankingAdvice
How does private equity recruitment work? Private equity is a highly competitive field with limited but highly paid roles. Most...| iBankingAdvice
TMT stands for Technology, Media, and Telecommunications. It is a specific industry group within Investment Banking that covers clients...| iBankingAdvice
A carve-out is a corporate maneuver where parent company divests an equity stake of its business, often a subsidiary or a business unit,...| iBankingAdvice
What is acquisition financing? Acquisition financing is capital obtained so that a company can buy another target company. Acquisition...| iBankingAdvice
You can think of Corporate Development as a company's in-house Investment Banking team. It is a unique career path combining deal-making...| iBankingAdvice
The short answer to "walk me through an LBO" A leveraged buyout starts with buying a company mainly using debt to increase the returns of...| iBankingAdvice
The short answer How are the three financial statements linked? Net income flows from the company's income statement to the balance sheet...| iBankingAdvice
What is a sell-side M&A process? The sell-side M&A process is the organized auction process of selling a company. Investment Bankers...| iBankingAdvice
What is the middle market? Middle market companies are businesses between small businesses and mega corporations. They have annual...| iBankingAdvice
EBITDA vs. gross profit – A quick overview Gross profit and EBITDA (earnings before interest, taxes, depreciation, and amortization) show...| iBankingAdvice
What is Unlevered Free Cash Flow? Unlevered Free Cash Flow (UFCF) is a company's cash flow available to both capital providers (debt and equity holders).It shows how much cash a business can generate to service its financial obligations or pay dividends after serving its financial obligations. It is also called Free Cash Flow to the Firm (FCFF). This cash flow figure is theoretical and accounts for operating expenses, capital expenditures and investment in working capital while ignoring interest| iBankingAdvice
What is the multiple on invested capital (MOIC)?MOIC stands for "Multiple on Invested Capital" and is a widely accepted measure of investment performance in the private equity industry.It is calculated by dividing the exit value purchase price of an investment by the purchase price of the initial investment.The multiple on invested capital helps investors assess the performance of the investment relative to the initial capital deployed. A higher MOIC is a sign of a more successful investment.MOI| iBankingAdvice
