M&A

What criterias are used to evaluate a business or Investment?

  • NPV (is King)

  • Net Profit Multiplier: P = Div / r

  • Profit Multiplier: P / EPS = 1 / r

  • Operational Profit Multiplier

  • Industrie Multiplier

  • Trailing vs Leading Multipliers

  • EBITDA & EBIT

  • DCF Model – find explanation here

  • Return on Investment

  • CAPM

  • WACC

  • Black & Sholes

  • Gordon Model: K = (d1/p0) + g

  • to be continued…