top of page

iBankingAdvice Blog
Learn about M&A Investment Banking and more
Advice from ex-Investment Bankers
Search


Enterprise value vs. equity value explained simply
Learn how enterprise value converts into equity value through net debt and debt-like items in M&A deals – the bridge from valuation to proceeds.


How synergies expand strategic buyer valuations
Learn how cost and revenue synergies drive higher valuations for strategic buyers, from shared service centers to network expansion examples.


How cost of capital drives valuation outcomes
Learn how changes in the cost of capital impact valuations across DCFs, LBOs, and market multiples — and why higher rates compress enterprise value.


Why LBO gives the lowest valuation
Learn why LBO models consistently produce lower valuations than DCF or comps. Understand how IRR targets, leverage limits, and the lack of synergies cap what private equity funds can pay for a business.


Why different valuation methods produce divergent results
Understand why trading comps, transaction multiples, DCF, and LBO models yield divergent valuations — and what those differences reveal about value.


4 ways to value a company — and which is highest
Learn the four main valuation methods—DCF, comps, precedents, and LBO. Understand how each works, when to use them, and which typically yields the highest valuation.
bottom of page