How Investment Bankers Value an Acquisition Target | Part 1: Normalised EBITDA and Trading Comps

Описание: In this two-part series, we value a company the way an investment banker does on a live deal, step by step, in Excel.

The deal: Nimbus Packaging, a promoter-owned flexible packaging business in Gujarat with LTM revenue of about ₹870 Cr. The promoter wants to sell 100%. Our client, Kestrel Equity, a mid-market PE fund, asks one question. What should we bid?

In Part 1 you will learn:
The one formula behind every acquisition valuation
How to calculate LTM revenue and EBITDA
What normalising EBITDA means, and how to test every add-back
Why the seller says ₹168 Cr of EBITDA and we say ₹138 Cr
Relative valuation and trading comps in Excel
Quartiles: median, 25th and 75th percentile, and why bankers use them

Download the model and practice file: https://wizenius.wixforms.com/f/75237...

Live Investment Banking training with placement assistance: www.wizenius.com

CHAPTERS
0:00 Seller says ₹1,610 Cr. Buyer says ₹1,110 Cr.
1:04 The deal and the one formula
2:09 LTM EBITDA in Excel
3:42 What normalising EBITDA means
5:53 Normalised EBITDA: seller vs buyer
8:49 Relative valuation explained
11:11 Trading comps in Excel
12:46 Quartiles: median, 25th and 75th percentile
14:53 Recap and Part 2

Nimbus, Kestrel and every peer and deal in this series are fictional. The numbers are illustrative. The method is exactly what bankers use.

#investmentbanking #valuation #financialmodelling #ebitda #Wizenius

TAGS
investment banking, company valuation, acquisition valuation, normalised EBITDA, EBITDA adjustments, trading comps, comparable companies analysis, relative valuation, EV EBITDA, quartiles in Excel, financial modelling India, M&A valuation, private equity, Wizenius