Frequently Asked Questions on Corporations for Sale
Posted by Kelli Matonak on Tue, Oct 27, 2009 @ 09:13 AM
Q: What is the price of the company for sale?
A:
The March Group does not believe there is a single price appropriate for each of the companies we represent. Rather, each company has a variety of value dimensions depending on the characteristics of the buyer. A buyer who is able to realize business synergies by combining the client company with its own operation, or by eliminating duplicative expenses, may have a different value expectation than a buyer who would operate the business as a stand-alone entity. Furthermore, a buyer with access to lower-cost senior debt may have a different valuation than a buyer who would finance a purchase through higher cost mezzanine financing. The March Group recommends that each prospective buyer evaluate the acquisition opportunity according to its own particular business characteristics and goals, and price the business accordingly.