3. Market position- Understand the competitive stance of the company, its market share and the dynamics of the industry.
Understand the management’s capabilities, and managerial depth.
Growth Potential: Assess the potential for growth in terms of market, new products or projects.
Risk assessment – Examine the risk factors rela
ted to the business and the environment including operational, market, financial and policy related risks.

2. Valuation Methods- Valuation through Comparable Analysis look into the peer group of companies in the same sector to derive valuation multiples like EV/EBITDA, P/E info.
-Industry Practice Valuation: Look for similar sized companies that were acquired and utilized this valuation in the market.
Discounted Cash Flows (DCF): Estimate future flows of cash and find the present value using a specific rate of discount on the future cash flows.

1.Financial analysis- Get and analyze the income statement, balance sheet of the company concerned as well as the cash flow statement.
Find historical revenues, earnings or flows of cash and their tendencies.

2. Valuation Methods- Valuation through Comparable Analysis look into the peer group of companies in the same sector to derive valuation multiples like EV/EBITDA, P/E info.

Valuation method of merger and acquisitions are divided into three classes:-

1- Market Based
2- Income Based
3- Asset Based

Valuing a company in the course of mergers and acquisitions (M&A) is a task that is broken into several methods and tasks. Here are the main stages and methods that are generally employed.

A merger happens when two companies join forces in order to create a new company. An acquisition, on the other hand, represents the purchase of a company usually smaller in size by a larger one. In the event of acquisition, the target company is integrated and ceases to operate as a separate entity. This concept is essential owing to its effect on the way the target company will be valued and for what purpose. Valuation in M&A means the values relative of the selling firm(s) under reorganization aimed primarily to assist the negotiators in arriving at a transaction.

Valuation is one of the crucial aspects in finance. It involves the evaluation of the current worth of an entity or asset. However, mergers and acquisitions (M&A) cannot be straightforward as this has many negotiators and parties. This guide discusses the primary methods employed in determining value in M&A transactions, their merits, and the difficulties they present.