We assess M&A targets by supplementing fundamental valuation techniques with a quantative and behavioural analysis of the market for the purchasers of enterprises or their targets.
"Acquisitions do not create value often enough - that is the analytical starting point for buyers and targets in negotiations"
In particular, we account for the fact the too many buyers overpay, particularly when compared to the value actually gained from an acquisition. This also frames target companies' negotiations and has particular importance when acquired owner-managers or other management see their futures within the acquired firm.
"Founders and management have to consider where they see their long term futures"
We can provide perspective on how far terms should be pushed in negotiations. This comparison is not just relative to the current market conditions, but relative to how favourable current conditions are versus the past or future potential.
"Point in time valuation of companies or departments can be insufficient where more detailed historical comparison can inform the negotiating process"