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By David Solomon
WWW.SOLOMON-CAPITAL.COM
DAVID@DSC.CO.IL
The Art of Firm
Valuation
By David Solomon
About David Solomon
With over 20 years of experience David Solomon, is one of Israel's leading experts in the
field of Corporate Finance. David, is the Former Managing Partner of Cukierman & Co.
Consulting Ltd, the founder and the CEO of B-PLAN, 4HIGHTECH [Investment Bank], and
Micromedic Technologies [Listed on the Tel Aviv Stock Exchange].
Mr. Solomon has worked with high profile clients in the global market such as IBM, Scitex,
Bezeq, Bank Discount, Bank Hapoalim, Bank Leumi, Israel Airospace Industries [IAI],
QUALCOMM, Dor Energy, RAPAK and others.

Mr. Solomon lectures in Courses in academic and other institutes. David is the author of
various books including: "From Seed to IPO", "Business Planning in the Post Bubble Era",
and "Biomedical - from Research to Market, The Business Challenge". He has
successfully worked with dozens of emerging companies and is accredited with over a
hundred winning business plans
Experience at a Glance
Experience at a GlanceYOUR GATEWAY TO SUCCESS
David Solomon Books : [Sold out]
Experience on a Glance….
The biggest reason for bad
valuations is not bad model but
bias……
Building a better valuation model
is easy but getting the bias out of
valuation is difficult…..
A. Damodarn
Some basics…
Risk
Potential
$$$$$
Time
Early
Stage
Growth
Maturity
Decline
Company Life Cycle
Company Life Cycle - & Firm Valuation
Forecasting Period Post Forecasting PeriodHistory
Ground zero
The
Company Forecasting
The
Market
The
Environment
-The
Valuation
Model
-The
Valuation
The Valuation Process
Evaluation ValuationForecasting
The Valuation Main Approach
• The Book Value Approach
• The Market Value Approach
• The Income Approach
just
The Book Value Approach
Book
Assets
Value
Adjust
ment
Factor
Liquidity
Factor
Liability
Assets Market Value
PE
Net
Profit
Firm
Value
The Market Value Approach
Current
Net
cash
Discounted
Cash
flow
Net
Surplus
assets
Firm
Value
The DCF Approach
FCF TV
DCF = -------_+ ---------- +Net Surplus
(1+r)t (1+r)n
Cost of Capital -WACC
WACC = Cd(1-T)(D/A) + Ce(E/A)
Where;
Cd - cost of Debt
Ce - cost of Equity
T- Tax rate
D - Debt
E - Equity
A- Assets
Cost of
Debt
Cost of
Equity
Cost
Of
Capital
Risk
free
rate
Risk
Factor
CAPM
Cost of Equity= Rf +Beta(Rm-Rf))
Where;
Rf - Risk free Rate
Beta - Risk factor [Market, Country, Special)
Rm - Market Premium rate
Cost of Equity
Capital Asset Price Model - CAPM
FACT!:Main Causes for Unsuccessful Fundraising are:
Lack of clear STRATEGY
Poor PREPARATION -
Broken COMMUNICATION
BAD LUCK…
Contact me today for :
BUSINESS PLAN - FIRM VALUATION - FUNDRAISING - M&A
david@dsc.co.il

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The Art of Firm Valuation