ADVENTIS FMC LEVEL 2 EXAM STUDY SHEET
2026 QUESTIONS WITH SOLUTIONS
GUARANTEED TO PASS
⩥ who said, "Value is what people are willing to pay for". Answer:
John Naisbitt
⩥ 2 primary types of valuation. Answer: 1. relative valuation
2. intrinsic valuation
⩥ relative valuation refers to what. Answer: methods that compare the
price of a company to the market value of similar assets
⩥ intrinsic value refers to what. Answer: the value of a company
through fundamental analysis without reference to its market value
but instead around its ability to generate cash flow
⩥ in an M&A context, what is EV. Answer: transaction value
⩥ in an M&A context, what is equity value. 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. 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. Answer: 1. comparable
company analysis
2. acquisition comparables analysis
⩥ comparable companies analyses (public trading comparables
analyses). 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. 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. Answer: - Ex: 7.0 = x/5 ; 6.0 = x/5
2026 QUESTIONS WITH SOLUTIONS
GUARANTEED TO PASS
⩥ who said, "Value is what people are willing to pay for". Answer:
John Naisbitt
⩥ 2 primary types of valuation. Answer: 1. relative valuation
2. intrinsic valuation
⩥ relative valuation refers to what. Answer: methods that compare the
price of a company to the market value of similar assets
⩥ intrinsic value refers to what. Answer: the value of a company
through fundamental analysis without reference to its market value
but instead around its ability to generate cash flow
⩥ in an M&A context, what is EV. Answer: transaction value
⩥ in an M&A context, what is equity value. 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. 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. Answer: 1. comparable
company analysis
2. acquisition comparables analysis
⩥ comparable companies analyses (public trading comparables
analyses). 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. 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. Answer: - Ex: 7.0 = x/5 ; 6.0 = x/5
