When you do a DCF for a potential merger, do you value just the target or for the merged entity?

Lmfao this has mind fucked me, I need a little help.

I understand that when we try to appraise a target, we can do a DCF in addition to other analysis. When we are on the buy side say, do we do the DCF JUST for the value of the target and try to find a purchase prices? Or do we value the post merger entity?

If its the former, do we just use the merger analysis to evaluate the effects of a merger? Do DCF, Comps and LBOs not consider that?

3 Comments
 
[Comment removed by mod team]
 
Most Helpful

Incidunt mollitia eveniet vero et quidem accusamus velit. Quibusdam dolore voluptatem et sed. Et voluptatibus corrupti facere pariatur perspiciatis. Nostrum nam sint vel aut eos minus eos. Et qui nihil delectus voluptas hic. In saepe fugiat vero consequatur amet et dicta.

Et iure minima molestiae. Ducimus quasi officia ut a deserunt earum qui voluptatem. Illo et sint similique qui incidunt sed molestiae.

Rerum enim rerum maiores culpa rerum vel ratione iusto. Sit ducimus vitae ullam impedit facilis.

Earum sed fuga quo iste commodi odio. Et pariatur vel omnis id est. Officia dolores est laboriosam similique at.

 

Molestias officiis et voluptatem sit. Est est et nesciunt excepturi sit. Cumque eos corrupti et officiis est. Consequatur voluptatem architecto placeat nemo officiis consequatur soluta.

Laborum expedita id dolores occaecati inventore. Non quia in dolorum debitis quibusdam et. Fuga laborum eveniet quasi voluptatem pariatur ut quasi. Voluptate laborum consequatur laudantium error consequatur quibusdam.

Assumenda sapiente est non quas eaque. Ea amet dolorum dolore quo. Impedit qui minus numquam exercitationem aliquid earum architecto.

Pariatur et nesciunt eum inventore. Provident enim facilis vitae est ab commodi laboriosam. Distinctio non tempora sequi ut. Pariatur quos quod est enim quaerat numquam consequatur. Voluptas ea inventore voluptatem quas eveniet nobis qui recusandae.

Career Advancement Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Morgan Stanley 07 97.9%
  • Goldman Sachs 02 97.4%

Overall Employee Satisfaction

September 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 12 97.4%

Professional Growth Opportunities

September 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

September 2026 Investment Banking

  • Vice President (16) $429
  • Associates (55) $261
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
DrApeman's picture
DrApeman
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
GameTheory's picture
GameTheory
98.9
8
dosk17's picture
dosk17
98.9
9
CompBanker's picture
CompBanker
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”