Could someone tell me how to prize a company and what could it be the best approach to this situation (framework) nThanks!
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Hi,
Not sure if I understand your question correctly.
For commercial DD you can use the following structure:
Market
- Size
- Growth rates
- Profitability
- Segments
- Distribution channels
Competition
- Market shares of competitors and their segments (see the next point)
- Concentration / fragmentation (Fragmented market with lots of small players is less mature and easier to enter from a scratch. Concentrated market is hard to enter but has potential acquisition targets)
- Unit economics of the players (Margins, relative cost position)
- Key capabilities of the players (e.g. suppliers, assets, IP, etc)
Company
- Unit economics (Margins, costs) in current or target markets
- Brand
- Product mix
- Key capabilities
Feasibility of exit (in case of PE):
- Exit multiples
- Exit time
- Existence of buyers
Best
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