Uncovering blind spots in deal valuations
Successful deal making requires a focus on the relationship between risk and return. However, some potential "blind spots" can threaten your probability of realizing expected value from an acquisition.
Uncovering blind spots in deal valuations discusses how enhanced diligence of valuation issues can improve your assessment of price against intrinsic value, and reduce the risk of overpaying for targets. The strategies discussed include:
- Exposing biases that may be clouding judgment
- Balancing "art" and "science" in the valuation approach
- Looking beyond historical results
- Testing valuation model integrity
- Defining deal objectives in the value analysis
- Considering tax and accounting impacts
- Realistically estimating value from potential synergies