Most M&A studies indicate too many acquisitions fail to generate incremental shareholder 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 reconciliation with other diligence findings, synergy analysis, value driver/sensitivity analysis, model assessment, and the application of valuation methodologies.
Price and value, then, are two different things. In the gap is where CFOs become expert deal makers.
Check out the full article on CFO.com, featuring:
- Aaron Gilcreast, Assessing Deal Value Leader
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 something is really worth).
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.