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- Topic: techical question for the ibankers on this forum
| Author | Topic: techical question for the ibankers on this forum |
|---|---|
| sadmar @2020-06-02 13:44:01 |
Hey guys, I was just reviewing my technicals for the upcoming recruiting season and came across 3 issues I'd appreciate some clarification on: 1) For the precedent/comparable transactions valuation method, this guide I'm reading says "If you figure out what the key valuation parameter was, you can examine at what multiples of those parameters the comparable companies were valued". My question is, by dividing the valuation(market cap) of these past transactions by certain multiples (ie: sales, ebit, earning) one can get many possibilities. By using this valuation method how would I determine which multiple parameter was used to perform the original valuation? 2) Can anyone give me a quick overview of the concept of purchase vs pooling for m&a deals and the pros and cons of each (including goodwill and tax implications)?. I also hear that pooling is no longer legal by GAAP, is this true? 3) Why are the pros/cons of using EV/EBITDA vs P/E multiples when performing valuations and which multiples methods are generally the most prevalent in Ibanking and why? Thanks for your time and knowledge guys. |
