Assessing a deal’s intrinsic value

Most M&A studies indicate too many acquisitions fail to generate intrinsic value for buyers, yet surveys suggest deal makers believe the opposite is true. PwC’s Assessing Deal Value service provides diligence of valuation issues in a deal context, including cash flow assessment, value range development, reconciliation with other diligence findings, synergy analysis, value driver/sensitivity analysis, model assessment, and the application of valuation methodologies. The ultimate goal is to help buyers avoid overpaying for targets -- and to help sellers get the most from divestitures.

Price and value, then, are two different things. In the gap is where CFOs become expert deal makers.

Check out the full article in CFO magazine, featuring:
- Aaron Gilcreast, Assessing Deal Value Leader

Looking beyond earnings per share to assess the value of growth
Daniel Hurwitz, CEO DDR Corp., discusses investor expectations and looking beyond earnings per share when assessing the value of growth. From the PwC US CEO Survey interview series.

Value range assessment

Due diligence exercises share the common goals of uncovering risks and maximizing realization of returns. As a component of diligence, value diligence helps meet these goals by exploring the gap between market value (what must be paid to effectuate a transaction) and intrinsic value (what a target is really worth).

How PwC can help

PwC’s Assessing Deal Value service provides an objective view of the impact that business drivers, market economics, and industry trends are expected to have on value. Our analyses complement other diligence results to improve deal negotiations and the probability of deal success. We can also assist with building or testing your approach to deal pricing models.

For more information, contact Aaron Gilcreast or download a PDF describing our approach.