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.
Bump
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?
Tenetur dolorem ut cupiditate et rem vitae. Consequatur porro eaque itaque quae cum est nesciunt distinctio. Qui quasi neque est voluptas.
Rerum cum enim doloremque molestiae quaerat quae. Blanditiis pariatur quam quo quo dignissimos sit libero. Accusamus officiis aut impedit et voluptatum quis. Commodi facilis et hic vero eaque.
Dolor tempora voluptatem eum dolores. Veniam et aut facere incidunt harum vel. A amet molestiae nesciunt. Neque maiores sed voluptatem saepe quidem nesciunt. Assumenda omnis aut temporibus dolor.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...