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Valuation techniques commonly used in M&A

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What are some of the valuation techniques commonly used in M&A? Compare and contrast the valuation techniques common to M&A activities. What is the purpose of having valuation techniques when pursuing a particular M&A strategy?

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What are some of the valuation techniques commonly used in M&A? Compare and contrast the valuation techniques common to M&A activities.

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Some of the common methods are:

Discounted cash flow method:

The discounted-cash-flow approach in an M&A setting attempts to determine the value of the company (or "enterprise value") by computing the present value of cash flows over the life of the company.

Free cash flow method: The free cash flows in an M&A analysis should be the ...

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Sheetal Jain, PGDM
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  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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