Articles
Valuation Multiples: Definition & Calculation
The valuation multiples approach is commonly used to find out a business’s value. It is based on premise that companies operating in similar businesses tend to have similar prices, have similar cost structure and operate in similar market conditions.
Working Capital: What It Is, How to Calculate It, and Why It Matters
AG By Arihant Gadhiya
Net Working Capital In Mergers & Acquisitions (M&A)
A net working capital analysis is one of the key areas in financial due diligence, in addition to the quality of earnings analysis—i.e., adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization)—and a debt and debt-like items analysis.
Understanding Cash Flow Analysis: Definition, Benefits, and Examples
Cash flow analysis is a method of evaluating the financial performance and health of a business by examining its cash inflows and outflows. Cash flow analysis helps business owners, managers, investors, and creditors to understand how a business generates and uses cash, and how it meets its short-term and long-term obligations.
Account Reconciliation in Accounting
Account reconciliation is a crucial process in the world of finance and accounting. It ensures that the financial records of a company are accurate, consistent, and complete.
Mastering the Art of Discounted Cash Flow (DCF) Valuation
Discounted cash flow (DCF) valuation is a widely acclaimed financial modeling technique that determines the present value of an investment by carefully analyzing its anticipated future cash flows.
Decoding Pre-Money vs. Post-Money Value: A Complete Guide
Understanding the distinction between pre-money and post-money value is fundamental for both entrepreneurs and investors in the realm of startup financing. Pre-money value refers to the estimate of a company’s value before it receives new capital from investors, whereas post-money value reflects the company’s value after the infusion of new investment.
Business Valuation: An Introduction
Business valuation is the process of determining the economic value of a business or company. It involves analyzing various aspects of the business, including financial performance, assets, market competition, and future earning potential.
409A Valuation: What You Need to Know!
A 409A valuation is a formal valuation of a private company’s common stock, performed by an independent third-party appraiser, to determine the fair market value (FMV) of the common stock, which is used to set the strike price of the stock options granted to employees and other service providers.