Methods answer different questions
Comparable transactions, public-company multiples, discounted cash flow, and buyer-specific synergies can produce different indications because they reflect different assumptions.
Quality affects the multiple
Growth, recurring revenue, concentration, management depth, margins, capital intensity, and transferability influence how buyers apply market evidence.
Structure affects realized value
An attractive enterprise value may include contingent consideration, rollover, debt assumptions, or working-capital adjustments. Owners should understand the bridge to proceeds.
Questions for Owners
Questions worth considering
- Which assumptions have the greatest effect on value?
- What characteristics support a premium or discount?
- How does enterprise value translate into owner proceeds?