FIG Valuations in Practice
Does anybody here with actual FIG M&A experience see people using DCF modelling as the valuation driver in deals? Was recently working with another bank and all of their valuations for the deal were based on DCF instead of comps or residual income? Is this typical at a lot of firms?
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Sorry for being vague, our team doesn't work on a broad range of transactions, we do almost exclusively pretty vanilla banks (think regional, community, thrift, etc) so I use FIG very narrowly when I probably shouldn't. This deal was for a regional bank ~80% of loans in 1-4 family with very little income derived from non lending areas. No asset management arm, nothing international. Their deal prices came roughly in line with ours so it wasn't an issue, I am just more curious if this is a widespread practice.
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