Sell-Side M&A Advice: What Is Your Company Worth?

A business is worth what someone will pay for it.  The definition of fair market value is the amount a willing Buyer will pay a willing Seller in the absence of duress.

“All right,” you say, “so it’s worth what someone will pay for it.  Thanks a lot.  Now can you do me a favor and provide a little bit more guidance?”

Absolutely!  It’s good to remember the basic principle above, though, given that it is ultimately true in every situation.  In upcoming posts, we’ll provide you a number of guiding valuation principles, but any Buyer can say at any time, “All those principles are fine, but X is what it is worth to me and X is all I’ll pay.”

More on valuation to come! Check back in a couple days!

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