5/13/25, 7:46 AM Adventis FMC Level 2 2025 UPDATE| COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS (COMPLETE SOLUTIONS) G…
Adventis FMC Level 2 2025 UPDATE|
COMPREHENSIVE QUESTIONS AND VERIFIED
ANSWERS (COMPLETE SOLUTIONS)
GUARANTEED SUCCESS |GRADE A+!! (100%
ACCURATE) GET IT RIGHT!!
Save
Terms in this set (89)
what people are willing to pay for (what the buyer
what is value
pays)
who said, "Value is what John Naisbitt
people are willing to pay
for"
2 primary types of 1. relative valuation
valuation 2. intrinsic valuation
relative valuation refers to methods that compare the price of a company to the
what market value of similar assets
the value of a company through fundamental analysis
intrinsic value refers to
without reference to its market value but instead
what
around its ability to generate cash flow
in an M&A context, what is transaction value
EV
in an M&A context, what is purchase price
equity value
https://quizlet.com/1043310905/adventis-fmc-level-2-2025-update-comprehensive-questions-and-verified-answers-complete-solutions-guaranteed-suc… 1/9
, 5/13/25, 7:46 AM Adventis FMC Level 2 2025 UPDATE| COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS (COMPLETE SOLUTIONS) G…
- the $2M would be used by shareholders of the
acquired company to pay down existing $15M in debt
a company sold for $100M
to make $13M in debt now (15 - 2 = 13)
and the company being
- the proceeds from the deal would then be used to
bought had $15M of debt
pay down the remaining debt (EV = CS + PS + Debt -
and $2M of cash, what
Cash)
happens and what is the
- Result is 100 - 13 = 87
transaction value and
- TV = $100M
purchase price
- Purchase price = $87 (check to shareholders of
acquired company)
2 primary types of relative 1. comparable company analysis
valuation 2. acquisition comparables analysis
comparable companies - most common types of relative valuation
analyses (public trading - these methods allow investors to compare valuation
comparables analyses) of similar companies by comparing similar ratios
1. EV/EBITDA
most common public 2. EV/Revenue
trading comparable ratios 3. Net income/Earnings (share price/earnings per
share)
assume a company has - Ex: 7.0 = x/5 ; 6.0 = x/5
$5M of EBITDA and two - can conclude that EV for the company should be
public companies most between 30-35 million
similar to the company
trade at 6.0x and 7.0x
EBITDA, what might you
conclude
what happens when a investors will dig in to understand the rationale
company trades at a
multiple that is a premium
or a discount to the
industry average
https://quizlet.com/1043310905/adventis-fmc-level-2-2025-update-comprehensive-questions-and-verified-answers-complete-solutions-guaranteed-suc… 2/9
Adventis FMC Level 2 2025 UPDATE|
COMPREHENSIVE QUESTIONS AND VERIFIED
ANSWERS (COMPLETE SOLUTIONS)
GUARANTEED SUCCESS |GRADE A+!! (100%
ACCURATE) GET IT RIGHT!!
Save
Terms in this set (89)
what people are willing to pay for (what the buyer
what is value
pays)
who said, "Value is what John Naisbitt
people are willing to pay
for"
2 primary types of 1. relative valuation
valuation 2. intrinsic valuation
relative valuation refers to methods that compare the price of a company to the
what market value of similar assets
the value of a company through fundamental analysis
intrinsic value refers to
without reference to its market value but instead
what
around its ability to generate cash flow
in an M&A context, what is transaction value
EV
in an M&A context, what is purchase price
equity value
https://quizlet.com/1043310905/adventis-fmc-level-2-2025-update-comprehensive-questions-and-verified-answers-complete-solutions-guaranteed-suc… 1/9
, 5/13/25, 7:46 AM Adventis FMC Level 2 2025 UPDATE| COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS (COMPLETE SOLUTIONS) G…
- the $2M would be used by shareholders of the
acquired company to pay down existing $15M in debt
a company sold for $100M
to make $13M in debt now (15 - 2 = 13)
and the company being
- the proceeds from the deal would then be used to
bought had $15M of debt
pay down the remaining debt (EV = CS + PS + Debt -
and $2M of cash, what
Cash)
happens and what is the
- Result is 100 - 13 = 87
transaction value and
- TV = $100M
purchase price
- Purchase price = $87 (check to shareholders of
acquired company)
2 primary types of relative 1. comparable company analysis
valuation 2. acquisition comparables analysis
comparable companies - most common types of relative valuation
analyses (public trading - these methods allow investors to compare valuation
comparables analyses) of similar companies by comparing similar ratios
1. EV/EBITDA
most common public 2. EV/Revenue
trading comparable ratios 3. Net income/Earnings (share price/earnings per
share)
assume a company has - Ex: 7.0 = x/5 ; 6.0 = x/5
$5M of EBITDA and two - can conclude that EV for the company should be
public companies most between 30-35 million
similar to the company
trade at 6.0x and 7.0x
EBITDA, what might you
conclude
what happens when a investors will dig in to understand the rationale
company trades at a
multiple that is a premium
or a discount to the
industry average
https://quizlet.com/1043310905/adventis-fmc-level-2-2025-update-comprehensive-questions-and-verified-answers-complete-solutions-guaranteed-suc… 2/9
