Mergers & Acquisitions (M&A) Valuation Methodologies I

Mergers & Acquisitions (M&A) Valuation Methodologies I

Valuations are undertaken to determine how much an asset or a company is worth either today or in the future. Jo explains how to approach these valuations and the key metrics typically used to assess a company’s value.
Overview

Valuations are undertaken to determine how much an asset or company is worth and are conducted for a number of purposes: acquisitions, sales (including IPOs), joint ventures, liquidations, for taxation and financial reporting. Knowing the valuation’s purpose, whose perspective it is being conducted from and its premise (e.g. is the company a going concern, is it for liquidation or fire sale) is key. Introducing the ‘market valuations’ and ‘comparable company trading multiples’ valuation methods.

Key learning objectives:

  • What are valuations used for and how to approach them?

  • Explain the ‘market valuations’ methodology and which companies it is best suited to

  • Explain the ‘comparable company trading multiples’ method, its applications, pros and cons?

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Summary
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Expert
Josephine Tan

Josephine Tan

Josephine has spent the last 20 years working in corporate finance in a number of different roles – as an investment banker, corporate adviser, private equity investor and in publicly listed companies. More recently, Josephine has been leading the corporate finance function of a publicly listed mining company.

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