Purpose: To provide management with objective valuation information as they plan for or execute acquisition and divestiture decisions.

Business owners make thousands of decisions affecting the day-to-day activities of their companies. However, the most important decisions may involve selling their companies or expanding through acquisitions. Targeting prospective buyers and sellers, determining the proper process and timing the initiative are all essential. Yet, nothing is more critical than understanding the valuation issues.

Management cannot properly negotiate and close a transaction without a good understanding of the valuation considerations. This includes a survey of the market, including a competitive analysis; an in-depth company analysis; research on similar transactions; understanding of the cost of capital in the industry; evaluation of the value drivers; and assessment of synergistic benefits when applicable.