Investment Banking Blog


Welcome to the InvestmentBank.com blog where we cover mergers, acquisitions and investment banking topics.


August 30, 2013

Functions of the Acquisition Agreement

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 […]
August 28, 2013

Alternatives to the Discount Rate Method for Business Valuation

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%). […]
August 27, 2013

Brevity is Your Ally

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 […]
August 21, 2013

Market Comparable Analysis for Corporate Valuations

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 […]
August 14, 2013

Seller’s Discretionary Cash Flow Business Valuation

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 […]
August 13, 2013

When to Use Excess Earnings to Value a Company

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 […]
August 11, 2013

When to Use Industry-Specific Valuation Multiples for Business Valuation

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 […]
August 9, 2013

Capitalization of Earnings for Business Valuation

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 […]
August 8, 2013

Liquidation Value Method: When To Use When Valuing a Company

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 […]
August 7, 2013

Net Asset Value Method: When to Use it in Business Valuations

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 […]