Determining the Right Valuation

Determining the Right Valuation

Determining the Right Valuation
Shoot The Moon

 
 
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As a seller, you need to weigh today’s valuation over what the future valuation could be based on contract value and economic forecasts.  While future valuations are likely going to be higher, having the right mix of valuation criteria can ensure that you are getting a fair exit based on a multi-faceted assessment of the business. For example, looking at revenue and bookings vs EBITDA alone can yield a better valuation for a seller if the conditions are conducive to increased future valuations.
As a buyer, it is important to properly value the accretive nature of the transaction, such as ensuring the added benefit to the combined company is realized as part of a combination proforma. We help buyers identify true attainable returns on a transaction and what additional investments will be needed to reach those forecasts.

In this episode, we discuss the different lifecycles and use cases that our clients face during this phase of the process and how we look at win-win scenarios when documenting a transaction to ensure both sell-side and buy-side obtain the value expected post-close.

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