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Most Common Approaches To Business Valuation

We've gone through the common approaches to valuation, but what should you expect to encounter in the real world when you start conversations with buyers?

Most first phone calls with a private equity professional, will zero in on EBITDA and what multiple range to simply slap on top of that, prior to potentially digging deeper and moving towards LOI.

Conversations with a freshly minted MBA or or corporate finance professional turned business acquirer, might lead towards discounted cash flow and information they'll want for their excel models etc.

It's important to know what to expect, and what type of buyer is likely to lead with what type of valuation methodology, so you can be prepared and not get caught off-guard.


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