What is a Confidential Information Memorandum (CIM)? A Confidential Information Memorandum (CIM) is a document used in mergers and acquisitions to convey important information about a business that’s for sale including its operations, financial statements, management team, and other data to a prospective buyer. This guide will break down all the various sections that are included in most CIMs…
What is Adjusted Present Value (APV)? Adjusted Present Value (APV) is used for the valuation of projects and companies. It takes the net present value (NPV), plus the present value of debt financing costs, which include interest tax shields, costs of debt issuance, costs of financial distress, financial subsidies, etc. So why do we use Adjusted Present…
Download CFI’s Income Statement Template Please download CFI’s free income statement template to develop your own profit and loss statement for a business or to analyze another company. After you have downloaded the Excel file, you can enter your own numbers in cells with blue font color which will auto-populate an annual or monthly statement…
What are Valuation Multiples? Valuation multiples are financial measurement tools that evaluate one financial metric as a ratio of another, in order to make different companies more comparable. Multiples are the proportion of one financial metric (i.e. Share Price) to another financial metric (i.e. Earnings per Share). It is an easy way to compute a company’s…
What is Present Value of Growth Opportunities? Present Value of Growth Opportunities (PVGO) is a concept that gives analysts a different approach to equity valuation. Considering that valuation in stock markets is a combination of fundamentals and expectations, we can break down the value of a stock to the sum of (1) its value assuming…
What is Comparable Company Analysis? Comparable company analysis (or “comps” for short) is a valuation methodology that looks at ratios of similar public companies and uses them to derive the value of another business. Comps is a relative form of valuation, unlike a discounted cash flow (DCF) analysis, which is an intrinsic form of valuation….
What is an Exchange Ratio? In mergers and acquisitions (M&A), the exchange ratio measures the number of shares the acquiring company has to issue for each individual share of the target firm. For M&A deals that include shares as part of the consideration (compensation) for the deal, the share exchange ratio is an important metric….
Excel for Finance Functions This Excel for finance functions template demonstrates sample calculations using the top 10 most important functions and formulas for finance professionals. Below is a preview of the XNPV function example: Download the Free Template Download CFI’s free Excel template now to advance your finance knowledge and perform better financial analysis. #1…
Bloomberg Functions Spreadsheet This Bloomberg functions spreadsheet contains a list of some of the most common and important functions, keystrokes and shortcuts to know on the Bloomberg Terminal. Below is a screenshot of the Bloomberg functions spreadsheet: Download the Free Template Enter your name and email in the form below and download the free template…
