Take a Balanced and Informed Approach
When considering value, clients should take a balanced and informed approach that goes beyond headline figures. Value is not fixed; it’s influenced by a mix of financial performance, strategic relevance, market conditions, and deal structure.
Headline Price vs Equity Value
It is also important to distinguish between headline price (enterprise value) and equity value, as the difference can be material. Whilst enterprise value is important as it drives the commercial negotiation, it is equity value that typically reflects the proceeds a vendor receives.
Seek Expert Advice
The gap between enterprise value and equity value can be complex, and it is advisable to consult a corporate finance advisor to review and advise on this area.
