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ADVENTIS FMC LEVEL 2 EXAM 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
what is value - correct answer -what people are willing to pay for
(what the buyer pays)
who said, "Value is what people are willing to pay for" - correct
answer -John Naisbitt
2 primary types of valuation - correct answer -1. relative valuation
2. intrinsic valuation
relative valuation refers to what - correct answer -methods that
compare the price of a company to the market value of similar
assets
intrinsic value refers to what - correct answer -the value of a
company through fundamental analysis without reference to its
market value but instead around its ability to generate cash flow
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in an M&A context, what is EV - correct answer -transaction value
in an M&A context, what is equity value - correct answer -
purchase price
a company sold for $100M and the company being bought had
$15M of debt and $2M of cash, what happens and what is the
transaction value and purchase price - correct answer -- the $2M
would be used by shareholders of the acquired company to pay
down existing $15M in debt to make $13M in debt now (15 - 2 =
13)
- the proceeds from the deal would then be used to pay down the
remaining debt (EV = CS + PS + Debt - Cash)
- Result is 100 - 13 = 87
- TV = $100M
- Purchase price = $87 (check to shareholders of acquired
company)
2 primary types of relative valuation - correct answer -1.
comparable company analysis
2. acquisition comparables analysis
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comparable companies analyses (public trading comparables
analyses) - correct answer -- most common types of relative
valuation
- these methods allow investors to compare valuation of similar
companies by comparing similar ratios
most common public trading comparable ratios - correct answer -
1. EV/EBITDA
2. EV/Revenue
3. Net income/Earnings (share price/earnings per share)
assume a company has $5M of EBITDA and two public
companies most similar to the company trade at 6.0x and 7.0x
EBITDA, what might you conclude - correct answer -- Ex: 7.0 =
x/5 ; 6.0 = x/5
- can conclude that EV for the company should be between 30-35
million
what happens when a company trades at a multiple that is a
premium or a discount to the industry average - correct answer -
investors will dig in to understand the rationale
ADVENTIS FMC LEVEL 2 EXAM 2026
QUESTIONS AND ANSWERS | A+
GRADED | WITH EXPERT SOLUTIONS
what is value - correct answer -what people are willing to pay for
(what the buyer pays)
who said, "Value is what people are willing to pay for" - correct
answer -John Naisbitt
2 primary types of valuation - correct answer -1. relative valuation
2. intrinsic valuation
relative valuation refers to what - correct answer -methods that
compare the price of a company to the market value of similar
assets
intrinsic value refers to what - correct answer -the value of a
company through fundamental analysis without reference to its
market value but instead around its ability to generate cash flow
, Page | 2
in an M&A context, what is EV - correct answer -transaction value
in an M&A context, what is equity value - correct answer -
purchase price
a company sold for $100M and the company being bought had
$15M of debt and $2M of cash, what happens and what is the
transaction value and purchase price - correct answer -- the $2M
would be used by shareholders of the acquired company to pay
down existing $15M in debt to make $13M in debt now (15 - 2 =
13)
- the proceeds from the deal would then be used to pay down the
remaining debt (EV = CS + PS + Debt - Cash)
- Result is 100 - 13 = 87
- TV = $100M
- Purchase price = $87 (check to shareholders of acquired
company)
2 primary types of relative valuation - correct answer -1.
comparable company analysis
2. acquisition comparables analysis
, Page | 3
comparable companies analyses (public trading comparables
analyses) - correct answer -- most common types of relative
valuation
- these methods allow investors to compare valuation of similar
companies by comparing similar ratios
most common public trading comparable ratios - correct answer -
1. EV/EBITDA
2. EV/Revenue
3. Net income/Earnings (share price/earnings per share)
assume a company has $5M of EBITDA and two public
companies most similar to the company trade at 6.0x and 7.0x
EBITDA, what might you conclude - correct answer -- Ex: 7.0 =
x/5 ; 6.0 = x/5
- can conclude that EV for the company should be between 30-35
million
what happens when a company trades at a multiple that is a
premium or a discount to the industry average - correct answer -
investors will dig in to understand the rationale
