Methods of Valuation for Mergers and Acquisitions

18 Pages Posted: 21 Oct 2008 Last revised: 10 Nov 2021

See all articles by Michael J. Schill

Michael J. Schill

University of Virginia - Darden School of Business

Susan Chaplinsky

University of Virginia - Darden School of Business

Paul Doherty

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Abstract

This note addresses the methods used to value companies in an M&A (mergers and acquisitions) setting. It provides a detailed description of the discounted-cash-flow (DCF) approach and reviews other methods of valuation such as book value, liquidation value, replacement cost, market value, trading multiples of peer firms, and comparable transaction multiples.

Excerpt

UVA-F-1274

Rev. Mar. 19, 2018

Methods of Valuation for Mergers and Acquisitions

This note addresses the methods used to value companies in a merger and acquisitions (M&A) setting. It provides a detailed description of the discounted-cash-flow (DCF) approach and reviews other methods of valuation, such as market multiples of peer firms, book value, liquidation value, replacement cost, market value, and comparable transaction multiples.

Discounted-Cash-Flow Method

Overview

. . .

Keywords: mergers and acquisitions, valuation

Suggested Citation

Schill, Michael J. and Chaplinsky, Susan J. and Doherty, Paul, Methods of Valuation for Mergers and Acquisitions. Darden Case No. UVA-F-1274, Available at SSRN: https://ssrn.com/abstract=909677 or http://dx.doi.org/10.2139/ssrn.909677

Michael J. Schill (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4071 (Phone)
434-243-7676 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/schill.htm

Susan J. Chaplinsky

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4810 (Phone)
434-243-7676 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/chaplinsky.htm

Paul Doherty

affiliation not provided to SSRN

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