Valuation Framework
Our structured approach combines advanced analytical techniques with powerful digital tools for precise, context-specific valuations.
Hadaly's Approach
Our valuation methodology is designed to provide reliable estimates of a company's value. Our framework combines advanced analytical techniques with powerful digital tools, enabling the production of precise and context-specific analyses.
Methodologies
Multiples Method
Compare your company to others in your industry using specific financial ratios.
This approach involves comparing the company to others within the same industry using specific financial ratios known as multiples. These multiples are calculated by relating particular financial metrics, such as EBITDA or revenue, to enterprise value.
Revenue Multiple Method
Estimates value by multiplying annual revenue by an appropriate multiple. Particularly useful for growth-phase companies.
EBITDA Multiple Method
Estimates value by multiplying annual EBITDA by an appropriate multiple. Widely used for comparing companies with different capital structures.
Discounted Cash Flow (DCF)
Estimate current value by discounting projected future cash flows.
The DCF method estimates the current value of a company by discounting its projected future cash flows using an appropriate discount rate, typically calculated through the Weighted Average Cost of Capital (WACC).
Equity Method
Evaluate company value by adjusting assets and liabilities to fair market value.
The equity method evaluates the company's value by adjusting the market value of its assets and liabilities to their fair market value. By subtracting total liabilities from the revalued total assets, the company's equity value is determined.
N.B. In all applicable valuation methods, a normalized EBITDA is used by subtracting all exceptional or discretionary expenses in order to better reflect the company's recurring operational performance.
Terms & Definitions
Abbreviations
Frequently Asked Questions
What are comparable transactions and how are they used in valuation?
Comparable transactions are real M&A deals involving similar companies in terms of industry, size, and geography. By analyzing the multiples paid in these transactions (e.g., EV/EBITDA, EV/Revenue), we establish a market-based range for your company's value. Hadaly accesses extensive transaction databases to find the most relevant comparables.
How does Hadaly find financial comparables for my business?
Hadaly uses proprietary databases and industry data to identify companies with similar revenue, EBITDA, sector, and geography. We analyze their transaction multiples, operating ratios, and performance metrics to create a peer benchmark. This data-driven approach ensures your valuation is grounded in actual market conditions.
What is the difference between EBITDA multiples and revenue multiples?
EBITDA multiples relate enterprise value to earnings before interest, taxes, depreciation, and amortization — they work best for profitable, established companies. Revenue multiples relate enterprise value to total revenue — they are more appropriate for high-growth, pre-profit, or SaaS companies where profitability has not yet stabilized.
When should I use DCF analysis versus multiples-based valuation?
DCF is preferred when a company has predictable cash flows and a clear growth trajectory, as it captures the intrinsic value based on future performance. Multiples-based valuation is faster and works well when sufficient comparable data exists. Hadaly uses both methods and cross-references results for a more robust estimate.
Why does Hadaly use multiple valuation methods instead of just one?
No single method captures every dimension of a company's value. Revenue multiples favor growth, EBITDA multiples favor profitability, DCF captures future potential, and asset-based approaches reflect tangible value. By combining methods and weighting them based on your company's context, we produce a more defensible and comprehensive valuation range.