Breaking into M&A – Valuation [EN]

Valuation is undoubtedly at the heart of Corporate Finance. Accordingly, it is indispensable that candidates master the subject ahead of their interviews in the domain, particularly in M&A and Private Equity.

Interviewers almost always pose technical questions on valuation since it is an essential part of work in the sector. Being able to value a company is a precondition to being able to determine the acceptable price range for its acquisition or sale. Similarly, it would be impossible to advise a client seeking to sell its stake in a particular company, without first understanding the capital gains that could be obtained from such a transaction.

The vast majority of candidates are able to, when asked, cite the 3 principal valuation methods (company comparables, precedent transactions, the DCF). Yet this is the mere minimum that is expected – and hardly enough to succeed in your interviews. Recruiters look for the mastery of details. The strongest candidates, and those who eventually receive offers, are those able to explain the rationale underlying each step of the different valuation methods, and also to put theory into practice, by explaining for instance how they might – beyond simply reciting the formula – obtain the information necessary to compute the beta of a particular company. The aim of this course is to give candidates the extra edge necessary to distinguish themselves – to understand what the valuation methods are, why they are how they are, how to apply them, and, importantly, when to apply them. The objective is to enable you to achieve performance excellence in your interviews.