General Topics Flashcards
What are some drivers of valuation
Expected financial performance, discount rates, multiples, leverage levels, and financing terms, to name but a few.
What is a fairness opinion?
A fairness opinion opines on the fairness of the purchase price and deal terms offered by the acquirer from a financial perspective and is supported by a detailed overview of the methodologies used to perform a valuation of the target, typically a comparable companies analysis, precedent transactions, DCF analysis, and LBO analysis (if applicable).
How do non-recurring items affect financial statistics?
With all financial statistics, non-recurring items must be accounted for and the financial statistic must be adjusted for the statistic to be meaningful and useful for estimating future data or comparing companies over a time series of data points.
