Mergers, Acquisitions, and Other Restructuring Activities, 6th Edition

Introduction

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Part III covers alternative valuation methods and basic financial modeling techniques, as well as how such models may be applied in the merger and acquisition process. All valuation methods are subject to significant limitations, and a valuation approach reflecting a variety of the alternative methodologies is likely to provide a more accurate estimate of firm value than any single approach.

Chapter 7 provides a primer on how to construct valuation cash flows and the discount rates necessary to convert projected cash flows to a present value. Alternatives to discounted-cash-flow (DCF) methods are ...