I'm curious to see how other Corporate Development shops calculate WACC. I personally have worked in two different Corporate Development groups, one large-cap (>$25-50B, Industrials) and one mid-cap ($2-10B), Tech / Software), and the approach todifferent between the two shops.
At the mid-cap (where I am now), we start off with a equity risk premium based on a market index (i.e. S&P for U.S./domestic deals) coupled with a proprietary matrix based on revenue scale, profitability threshold (or Cash) , market positioning, and barrier to entry, to derive a WACC.
Would be great to hear how other Corp Dev shops approach WACC. Thanks in advance.