Corporate development valuation methods
Just joined the corporate development side after spending a few years in banking. Loving it until now and a lot of going on in our space (tech).
However, was kind of surpised by the simplicity of valuation methods that are used. Makes my life a lot easier but there is no sign of DCF's, LBO's, comps. All the stuff I used to slave away on in banking. Generally we team up with a DD provider to check the EBITDA the deal is structured on and a multiple is applied to that. Forecasts don't seem to matter that much except if we work with an earn-out structure.
Wondering how valuation is approached at other corporate development teams.
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Also interested
Yeah that sounds about right. We will still build a model but the key decision makers in the business only care about EBITDA multiples.
Do you always use adjusted EBITDA or actual EBITDA?
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