Transaction Advisory

Transaction Advisory

Are you looking to sell a company in your portfolio, an intangible asset, a division or your entire business? If so, you will need valuation support.

Have you received an unsolicited offer from an independent third party to acquire a company in your portfolio, an intangible asset, a division or your entire business ? If so, you will need valuation support.

Are you interested in acquiring a business or undertaking a growth strategy through acquisition? If so, you will need valuation support.

VSP can work with you and your team to provide the independent valuation support required in these and other transaction related situations to help ensure that a seller receives a fair price and does not ‘leave money on the table’ or, alternatively, help to ensure that a buyer pays a fair price and gets the best possible deal.

VSP understands the difference between Value and Price.

Fair market value is a notional concept and is defined as “the highest price, expressed in terms of cash equivalents, at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller, acting at arm’s length in an open and unrestricted market, when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts”.

Price, however, is what is actually realized in a sale on the open market. There are as many prices for any business interest as there are purchasers. Each purchaser can likely pay a price unique to it because of its ability to use the assets in a manner peculiar to it and will review a potential acquisition in relation to what economies of scale or ‘synergies’ may result from such an acquisition. In addition, various other factors such as relative bargaining abilities of the vendor and purchaser and their perception of the future progress of the business will serve to influence the price actually paid/received on an actual sale.

Thank-you so much for your time. I walked away from our meeting feeling confident that I know exactly what I have to do next.” “I can’t thank you enough for the insight because I ended up not going through with the purchase. There were far too many contradictions in the numbers to make a confident decision that the risk was worth it. It was much easier for me to see those gaps after our discussion.

 

Call VSP when you and your team require assistance with the following:

Buy-Side Assistance (Mergers and Acquisitions)

  1. Benchmark business valuation
  2. Pricing analysis
  3. Financial due diligence
  4. Identifying potential targets

 

Sell-Side Assistance (Divestitures)

  1. Pre-sale planning
  2. Exit/succession planning
  3. Benchmark business valuation
  4. Value enhancement recommendations
  5. Pricing analysis (i.e. a range of possible prices to expect to receive)
  6. Entire divestiture process pricing analysis

 

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