Ruben Xavier de Freitas

Going Concern as a Variable: Sector-Calibrated Survival Multipliers for Goodwill Valuation in Mergers and Acquisitions

Abstract Standard discounted cash flow (DCF) valuation treats going concern as a binary constant: the firm either exists or it does not. In mergers and acquisitions involving privately held companies – where no continuous market mechanism corrects for survivorship optimism and the DCF terminal value typically accounts...