M&A: APV in Action
Interactive

M&A: APV in Action

Intuition Publishing
Updated Sep 24, 2020

The adjusted present value (APV) approach is used to value target companies by splitting the valuation into two parts: the free cash flows of the target discounted at the unlevered cost of equity, and the value of the tax shield from debt finance. Here we show you how to perform an APV calculation using a worked example throughout.