In order to value a business that might be bought or sold, we learn how to look at historical acquisitions of similar businesses, to estimate a fair transaction or takeover value of a business. This session is complementary to Trading Comparables Valuation, but rather than listed peers, looks at recent historical deals where control was achieved by the buyer, to give a sense or fair value in a transaction context. This technique is used in M&A advisory and Private Equity to estimate the value of an entire business and the synergies that might be achieved by a buyer, rather than a small parcel of shares.
- Identify and select comparables historical transactions
- Accurately measure the historical recurring earnings of the companies acquired in these deals and compare this to the effective Enterprise Value paid by the acquirer for the entire business
- Interpret the results and apply your analysis to the target business
Complete topics step by step or jump to any of the below at any time.
- Selecting comparable transactions
- Calculating the deal value
- Calculating the LTM earnings of the acquired businesses
- Interpreting the output
This course is open to all. To maximize the benefit of this course we recommend an understanding of financial statements and Microsoft Excel.
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