What is Standalone Value? Standalone value is a valuation method that determines the value of a company in its current value before a merger and acquisition deal. It is used to determine the suitability of a target company as a merger or acquisition partner, and the synergistic effect that the transaction will bring to the...
What are Valuation Drivers? Valuation drivers refer to factors that increase the value of a business in the event of a sale opportunity. Business owners need to consider essential factors to increase cash flows, as well as reduce risk, thus enhancing the overall value of the company. They need to start monitoring their company’s value a...
What Does Valuation Mean in Finance? In finance, valuation refers to the process of assessing the worth of a company, investment, or asset based on future cash flows, financial statements, and other key indicators. While the stock market reflects current trading prices, valuation focuses on intrinsic value — what something is truly worth based on...
What is a Valuation Gap? A valuation gap arises when an individual wants to sell his company for more money than the buyer is willing to pay. Any individual who has had his firm appraised probably has an estimate of how much it is worth. It can, therefore, be frustrating when the person tries to sell...
What is the Upper Middle Market? The upper middle market is a market consisting of firms that earn revenues between $500 million to $1 billion. They make up a relatively small percentage (1%) of the overall market compared to the middle market. While they are nearly invisible, they usually have reputable brands, have high barriers...