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EXIT STRATEGIES FOR PRIVATE EQUITY INVESTORS

The entrepreneurs work very hard to make their business a success, but it not only important to build a business worth a fortune but also have an exit strategy which is a way to get your money back. The...


DISSECTING NON-COMPETE AGREEMENTS

Mergers & Acquisitions have become a common business strategy to consolidate businesses whereby an increase in market share is one of the plausible benefits of the transaction. However, the purpose of the transaction gets defeated if the seller starts...


Cash Flow Adjustments for Discounted Cash Flow Analysis

As individuals, we make personal decisions based upon the current cash available and expectation of future cash flows. Similarly, company’s current cash balance and future cash flow expectations help investors, managers and creditors take crucial business decisions which may...


Beta (β) for an Unlisted (Private) Company

Valuation practices and guidelines aimed at valuation of unlisted or private companies provide some leverage into estimation of variables to be used in the process. One such grey area is calculation and use of Levered and Unlevered beta of...


COMPONENTS OF DISCOUNTED CASH FLOW ANALYSIS

The Discounted Cash Flow Analysis (DCF) is one of the most widely used and accepted methods for calculating the intrinsic value of a company. In simple terms, discounted cash flow tries to work out the value of an asset...


Discounted Cash Flow Analysis: Pros And Cons

A DCF valuation attempts to get to the value of a company in the most direct manner possible: a company’s worth is equal to the current value of the cash flows it will generate in the future. In this respect,...


Applications Of Capital Asset Pricing Model

The world of finance and valuation is a mix of art and science where every variable utilized has its own significance and a discount rate or required rate of return is one of them. Weighted Average Cost of Capital...


RIGHTS ISSUE: A RIGHT OR A TRAP

Once a simple activity of raising capital has today become one of the most complex and carefully thought decision by corporates, during which everything from the cost of capital, return on equity to credit rating is considered before the...


Mergers and Acquisitions : Adding Value to a Transaction

  Mergers and Acquisitions are an integral part of the growth strategy for any business and can dictate the fortunes of the company for years to come. It is a way of restructuring an organization with an aim to improve...


Guideline Publicly Traded Company Method – A Deeper Insight

Guideline Publicly Traded Company Method, sometimes known as Market Approach is one of the most commonly used valuation technique because it generally requires least assumptions. Over the years this method has become a valuation cornerstone. However, this approach is...