We seek to mitigate risks for both buyers and sellers by being totally objective and independent in our work.
Both sellers and buyers face major risks when entering into negotiation.
Sellers' key risks:
1. Buyers walking away due to unrealistic asking prices.
2. Short-changing themselves if the asking price is too low.
3. Clawbacks or contingent considerations reducing the total purchase consideration.
Buyers' key risks:
1. Inflated valuation, leading to low ROI.
2. Unidentified risks factors.
3. Projections prepared by the sellers or the sell-side advisors often combine revenue streams with different risk profiles, making it difficult to assess key business and value drivers.
How we are able to help:
1. Our valuation is trusted by both parties because we maintain total objectivity and independence in our work.
2. We identify key business and value drivers as well as risk factors and ensure that they are factored into our valuation.
3. We assess revenue streams separately. This helps buyers and sellers to gain a better idea of the risk and the potential of each business segment and to structure the deal accordingly.