Valuation is the process of determining what your company is worth. In the M&A process, it is often performed ahead of going to market. VALUATION METHODOLOGIES There are three primary valuation methodologies: 1) comparable transaction multiples, 2) comparable trading multiples, 3) and discounted cash flow analysis. There are also other types of valuation methods that are not as relevant to middle-market M&A; therefore, this blog will focus on the three main ones. Comparable Transaction Multiples Comparable transaction valuations refer to what the market has offered for companies comparable to the company being evaluated. For example, if a company sold at eight times … [Read more...]