M&A: Comparable Company Valuation Method

As a Seller, if you are able to find a highly comparable company and have good data about it and the price for which it sold in the recent past, you have, arguably, the best valuation data possible.  Who can argue with the data?  Well, if it’s favorable to you, you argue that it establishes the valuation beyond doubt and negotiation.  If it is unfavorable, you dig deep and make a compelling argument that your transaction is actually not a good comparable and, in fact, deserves a higher price.

Traversi & Company is a premier sell-side M&A advisory firm - a boutique investment bank - serving the lower middle market. Visit us here.