5/8/16

I have heard that this sort of question is frequently asked in interviews. Through the search function, I haven't been able to find a direct answer. What is the general approach to answering such a question? Wouldn't the type of valuation and acquisition price depend on the industry of the target company?

Thanks!

Comments (5)

5/8/16

I might be missing something here, but isn't this a general type question where you would speak about the three main valuation methods (DCF, Comps, Deal Comps) and briefly mention LBO if it is a private equity acquisition?

Investment Banking Interview Course
5/8/16

Yeah this is just testing whether you know the 3 main types of valuation methods and any industry specific multiples.

5/8/16

Isn't this a more in depth question that requires you to understand the merger model?

5/8/16

I would definitely think so. If the question was about valuing a company then the 3 valuations would be a good answer but it seems like that would fall way short if asked the above.

5/8/16

Unlock These Comments - Free

Join Us or Login
Add a Comment