Solving the Value Puzzle - Factors Mid-Market Companies Should Consider When Evaluating M&A Targets in Post-Recession Economy
Many companies have stripped out costs and repositioned the business for future growth, resulting in valuations that can’t be justified by their financial performance over the past 12 to 24 months. How can a buyer evaluate a target when traditional valuation metrics no longer hold true?
Valuing companies with depressed earnings requires a mind set that balances financial hindsight with strategic foresight. Acquirers can gain critical insight by extending their diligence beyond typical financial and commercial due diligence and analyzing four critical factors: strategic fit, root causes, probability of performance gains, and attainability of potential synergies.
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