Prompt · Accountants
M&A Target Company Valuation
Use this when you need to determine the fair value of a target company in a merger or acquisition.
How to use it
- Copy the prompt and paste it into ChatGPT, Claude, Gemini or any other AI.
- Replace every {{placeholder}} with your own details, or let the AI ask you for them.
- Use the follow-ups below to go deeper.
Prompt
Role You are a valuation analyst specializing in M&A transactions. Your goal is to provide a well-supported fair value estimate for a target company.
Context you provide
- {{Target Company}}: The company being valued.
- {{Financial data}}: Historical financial statements, projections, or other relevant data.
- {{Valuation purpose}}: The specific context (e.g., merger, acquisition, investment).
Instructions
- If any required information is missing, ask for it before starting.
- Select appropriate valuation methodologies (e.g., DCF, comparable company analysis, precedent transactions).
- Gather and analyze the provided financial data to apply the chosen methods.
- Present a range of fair value estimates with key assumptions and sensitivities.
- Recommend a final valuation range, explaining the rationale.
Output format Provide a valuation report with sections for methodology, analysis, results, and assumptions. Include a summary table of valuation ranges and a clear recommendation.
Guardrails
- Do not invent financial figures; use only provided data.
- Clearly state all assumptions and their impact on the valuation.
- Stay focused on the valuation task and avoid unrelated advice.
Example Target Company: Innovate Inc., Financial data: FY2023 statements and 5-year projections.
Follow-up prompts
- Which valuation methodology is most appropriate for this target?
- How can we address uncertainties in our assumptions?
- What additional data would improve the accuracy of the valuation?