Valuation

Valuation

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Why Valuation is Important?

Valuation is the most fundamental and critical tool to aid decision makers in managing their companies and making investment decisions. By scientifically calculating the current intrinsic and relative values of the company (or assets), the decision makers would gain a holistic view based on traceable and dynamic business-influencing factors, enabling them to approach value-based management and place themselves in solid bargaining positions for investing transactions.

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Tailored Methodologies & Best Practices

For each valuation model being delivered, we all begin from scratch in building full, dynamic financial statement projection models derived from rigorous assumptions based on real data (corporate filings, industry research, investor presentations, etc). ARC Capital customizes each model’s structure based on the client’s excepted granularity and flexibility, complemented with professional and reader-friendly formats in order to optimize our clients’ experience working with us.

Selecting most appropriate models and combining both intrinsic and relative values, ARC Capital is ready to stand together and create your venture’s greatest triumph.

Comprehensive Models

DCF Model

Trading & Transaction Comps Model

M&A Accretion/Dilution Model

Tailored Methodologies

ARC Capital customizes each model’s structure

Selecting most appropriate models and combining both intrinsic and relative values, ARC Capital is ready to stand together and create your venture’s greatest triumph.

Comprehensive Models to Fit your Needs

 

1. DCF Model:

Discounted Cash Flow (DCF) analysis is one of the most fundamental, commonly-used valuation methodologies. It is a valuation method widely used in applied business practices.

 

2. Trading & Transaction Comps Model:

Relative valuation (“comps” analysis) is derived by comparing a company’s valuation multiples (e.g. Revenues, EBIT, EBITDA, P/E) to its comparable peers with similar operating and financial statistics. It facilitates valuation of private companies or companies with limited financial information availability and also serves as market-based sanity check to intrinsic valuations.

 

3. M&A Accretion/Dilution Model:

M&A analysis (a.k.a. pro forma analysis) evaluates the impact of a merger or acquisition on the income statement (IS) and balance sheet (BS) of a potential buyer. The model reveals key measures to evaluate pricing capacity of acquirer, optimal form of consideration (cash, stock, other securities, combination), and consequently affordability and bargaining positions.