Using Industry Benchmarks to Establish Secure Negotiating Positions for M&A Purposes

Business Valuation UpdateVol. 25 No. 12
December 2019
Casey Karlsen , ASA
Seth Webber, CFA, ASA, CEPA, CBA, CVA
M&A valuations
M&A transactions, mergers and acquisitions (M&A), merger price, benchmark, guideline transaction method

Summary

M&A parties are often at odds with the valuation, causing many deals to ultimately fall apart. One solution to this dilemma is to select a multiple based on how the subject company compares to industry benchmarks. The authors include a discussion of a new resource: The Valuation Benchmarking Platform.