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Mergers & Acquisitions For Dummies, 2nd Edition
book

Mergers & Acquisitions For Dummies, 2nd Edition

by Bill Snow
May 2023
Beginner
368 pages
10h 23m
English
For Dummies
Content preview from Mergers & Acquisitions For Dummies, 2nd Edition

Chapter 6

Explaining and Influencing Valuation

IN THIS CHAPTER

Bullet Learning what valuation really means

Bullet Comprehending various points of view on valuation

Bullet Understanding a valuation report

Bullet Getting the inside scope on what influences valuation

“Valuation is a complex mathematical formula … that largely depends on which side I’m representing.” That’s a joke I’ve used many times when delivering an M&A presentation. Beyond a bit of haughty smugness, the essence of that quote is at the heart of any transaction: Something is worth whatever people agree it's worth.

Unlocking the mysteries of how to know what to pay for a company was one of the reasons I became interested in entrepreneurship. Valuation is at the core of mergers and acquisitions. After all, if both sides can’t agree on a price, no deal happens.

In this chapter, I introduce you to the concept of valuation: how to determine it, why it’s important, why buyers pay what they pay, and how sellers can create a more compelling valuation.

Pondering the Meaning of Valuation

Valuation is what two sides — buyer and seller, in the world ...

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Mergers & Acquisitions For Dummies

Mergers & Acquisitions For Dummies

Bill Snow

Publisher Resources

ISBN: 9781394169504Purchase Link