What is valuation in M&A?
Valuation in M&A is the process of determining the fair market value of a company being considered for a merger or acquisition. This value is not only based on financial figures but also includes many other factors such as growth potential, brand value, market position,…
Valuation plays a pivotal role in guiding financial decisions, shaping negotiation strategies, and ultimately influencing M&A success.
The importance of valuation in M&A deals
Valuation in M&A deals plays an important role in the negotiation and decision process. Valuation ensures that the deal aligns with the strategic goals of both companies, maximizing the value of the transaction for all stakeholders. By accurately assessing the value of a company, valuation allows both parties to make informed decisions and reach a mutually beneficial agreement.
In the complex legal and financial context of M&A deals, valuation serves as an effective risk control tool, as lenders and investors often rely on it to assess the risk and potential return of the investment. An accurate valuation ensures fairness and compliance with relevant laws and regulations, minimizing the possibility of legal disputes after the transaction is completed.
M&A valuation process
According to statistics, a significant 70% of M&A deals fail due to inaccurate valuation. This is primarily caused by discrepancies between the target company’s perceived value and the investor’s assessment, hindering successful negotiations.
In addition to physical assets, the value of a business is also hidden in intangible factors such as brand reputation, customer relationships, and future development potential. To accurately and comprehensively assess the value of a business, it is necessary to build a professional and transparent valuation process.
- Identify assets and determine market or non-market value as the basis for valuation.
- Establish a valuation plan.
- Conduct a field survey, collect information on management capacity, revenues and expenses, total value of assets owned by the business,…
- Analyze information related to valuation.
- Determine the value of assets to be appraised.
- Prepare a valuation report, valuation certificate and send it to customers and related parties.
MEDi Deals – Professional and transparent medical valuation solution
To reach a mutually beneficial agreement between the seller and the buyer, both parties need a reputable, professional valuation agency to strengthen the strategic partnership. MEDi Deals is proud to be a bridge between clinics, medical facilities in Southeast Asia and Japanese investors in the medical field, supporting business expansion through M&A.
MEDi Deals provides a professional medical valuation solution, including in-depth analysis of operating situations, asset valuation and financial models to provide the most reasonable valuation.
With a deep understanding of the market and a comprehensive evaluation system, MEDi Deals’ experienced experts help clinics and hospitals improve their competitive advantage and attract potential investors with transparent valuation solutions:
– Provide in-depth analysis of the market and competitive edge
– Accurately evaluate, maximizing benefits for all parties
– Assess strengths and potential risks
– Identify growth potential to attract suitable partners
MEDi Deals is a trusted partner, providing professional, transparent and comprehensive medical valuation services, helping customers maximize business value and succeed in M&A deals. Contact MEDi Deals today for a free valuation and unlock the potential for strategic cooperation!
Are you ready to sell your clinic or hospital? Start the valuation process with MEDi Deals now to reach a successful M&A deal!