In the fast-paced world of finance, a solid technical foundation is crucial for success. However, the rapid evolution of this field has made it challenging to codify the essential aspects of corporate finance, particularly valuation. In response, the authors have created a resource they wish had been available when they entered Wall Street. This book offers an accessible and authoritative exploration of key valuation methodologies used on Wall Street, including comparable companies, precedent transactions, DCF, and LBO analysis. These methods are vital for determining the value of both public and private companies in M&A transactions, LBOs, IPOs, restructurings, and investment decisions. The authors employ a step-by-step approach for each methodology, building a comprehensive knowledge base while defining essential terms and financial concepts. They also cover the fundamentals of LBOs and the M&A sale process. In light of the subprime mortgage crisis and credit crunch, the finance world is refocusing on valuation fundamentals and due diligence, emphasizing realistic risk assumptions and various value drivers. While valuation blends art and science, the authors provide practical judgment skills and insights to navigate the evolving landscape of finance.
