“The larger portion of financial buyers is increasingly setting value,” according to Jeremy Busch (TorQuest Partners, Toronto), who spoke to the sold-out Eastern Regional CICBV conference in Montreal at the start of the month. The trend could modify the assumptions in fair market value and fair value assessments. But, the way Busch and his TorQuest team of private equity managers see it, value is still a function of steady cash flow (for debt service); a defensible market position; low working capital requirements; a strong management team; and the potential for improving margins. So while some PE executives may downplay DCF-based valuations in favor of workable exit multiples, it appears that PE money still follows—and values—the same corporate attributes.
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