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Mergers & Acquisitions: Valuation

Tom Spencer

LAST post, I highlighted the importance of strategy when considering the viability of a potential acquisition; however, before a final decision can be made, a consultant needs to estimate the value of the target company. Valuation of discounted expected future cash flows. “Price is what you pay. Value is what you get.”

Cash Flow 109
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Coronavirus & Consulting Offers

Tom Spencer

The UK has 3,500 known cases of the virus and London will probably be shut down in the next week, if not before. Top consulting firms have hundreds of current consultants either sitting idle or working a limited case load. The coronavirus epidemic has rattled the planet. Commerce has ground to a halt. Today, not so much.

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Case Math

Tom Spencer

In this post we outline some mathematical concepts that may prove useful for solving consulting case questions. Net Present Value: The NPV of an investment is the present value of the series of expected future cash flows generated by the investment minus the cost of the initial investment. (Source: Flickr ).

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Management Consulting

CaseInterview.com

As a client explains the challenges they’re facing, they may present mixed information or a biased perception. Your client may present the issue in a biased manner. They may mix separate issues or expect that their previous strategies will work in a new market. Let’s use the example of a business that’s seeking to relocate.

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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

Since then, we interviewed several chief financial officers (CFOs) of leading technology companies and senior analysts of investment banks who follow technology companies. Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select.

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Business Valuation Lessons From ESOPs

Martinka Consulting

One of my roles was being on the team interviewing the critical (and very expensive) ESOP advisors. In every case the answer was, “the valuation.” In the Discounted Future Cash Flow method profits are projected (same as the first issue) and discounted back to a present value.

ROI 40
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Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

Case Against The Fed. So refraining from any forecast of what will happen in the near term, it’s sufficient to observe that the economic data is not nearly as strong as widely perceived, and the impact of QE on stock prices does nothing to improve the underlying cash flows. This Week in Money Interview.