Investment Banking Blog

In my experience, consummating the deal is highly binary in nature. That is, it either goes very smoothly or it becomes costly, time-consuming and altogether […]

Other methods to utilize in valuing companies include Capitalization of Earnings Multiply base year earnings/cash flow by a capitalization rate ( typically 15% to 40%). […]

I’ve heard it stated in multiple ways and from countless sources, but I couldn’t agree more: if you can’t explain yourself in one sentence and […]

The IRS provides some valuable insight to the important issues in valuing companies which Deal Capital’s philosophy closely follows (value is a prophesy of the […]

There are a few instances where valuing a business using the seller’s discretionary cash flow is appropriate. Here are some explicit examples The company’s value […]

Below are a few pointers on when using excess earnings to value a business is appropriate: The company’s value is derived primarily from its earnings […]

Here are some instances when using Industry Valuation Multiples for valuing your company are appropriate There is an adequate number of comparative companies and/ex transactions to determine […]

The following are scenarios where utilizing the Capitalization of Earnings method for business valuation would be highly effective. Earnings capacity contributes significantly to the company’s […]

Consider using the Liquidation Value Method (as opposed to the Net Asset Value Method) when valuing a company if the: The liquidation value is an […]

Consider using the Net Asset Value Method for valuing a business when: The company holds significant tangible assets, and there are no significant intangible assets. There […]