FINAL VALUATION

We’ve established that due diligence allows you to confirm your assumptions about each functional area of the prospect company, based on information you have gathered since the beginning. In the same way, it also enables you to solidify the numbers behind your valuation of the company. With fuller access to the seller’s books, you will be able to plug new numbers into the methods you used for your initial valuation to arrive at more accurate figures.

Even with more precise numbers, valuation still has the potential to be a stressful exercise where emotions run high. You can mitigate some of this by turning to an independent valuation expert. This will demonstrate that you are not trying to force an unfair number into the deal, ...

Get Successful Acquisitions now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.