Premium buyers seek to acquire businesses that will enhance operations and contribute to future growth
 
Premium buyers value acquisition opportunities based on future cash flow
potential
 

Utilizing sound, current and
credible market research is an important first step to developing credible financial projections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

www.genwealthequity.com

 

Valuation is driven by future value
 

• While understanding the past performance of a business is an important
step to framing valuation expectations, buyers are ultimately paying for
the future cash flows of a business.

• Combining business judgment with sound market analysis to derive
reasonable financial projections is therefore critical to achieving maximum
value.

• In negotiating valuation, a seller should:

• present the strategic and financial merits of the proposed transaction

• convince the buyer of the future cash flow potential of the business

• quantify the resulting revenue and cost synergies

 
Use market analysis to support financial projections
 

• Utilizing sound, current and credible market research is important to
supporting the future cash flow potential of a company.

 
Build a five year pro forma financial projections model that
buyers will have confidence in
 

• Utilizing defensible and realistic market assumptions in the context of a
combination with the buyer as well as quantifying related synergies will
allow the seller to convince the buyer of the value proposition of the
transaction.

• Addressing future market penetration, revenue growth and cost savings
opportunities is an important component to maximizing value.

 
Generational Wealth & Equity understands the dynamics that drive valuation discussions
 

• With decades of collective experience, Generational Wealth & Equity’s representatives have considerable experience in conducting rigorous market research and analysis to effectively market and position your company.

We are experts in helping companies develop sound, defensible financial
projections that will serve as a key component in negotiating for maximum
value.