M&A deal valuation: mergers and acquisitions with PKF Valuation of Property
2022.10.04M&A (Mergers & Acquisitions) deals involve mergers and acquisitions between companies.
Although the terms “merger” and “acquisition” are often used interchangeably, they have different legal meanings. In a merger, two companies of equal size combine into a single entity. In an acquisition, a larger company buys a smaller one, absorbing its business.
M&A deals can be friendly or hostile, depending on whether the target company’s board of directors approves the transaction.
The main motivation behind most M&A (Mergers & Acquisitions) deals is the synergistic effect — a mutually beneficial collaboration of two or more companies that together can generate greater returns than each individually.
Valuation is needed at different stages of an M&A deal, including the preliminary phase. It is essential to clearly understand how valuable the target company is, both from a market perspective and in terms of investment value.
It is also important to assess the value effect of the merger — how the value of the companies before the deal compares to the value of the newly formed company, and how significant the “synergy” effect is, i.e., the value created by the M&A deal.
✅ Since its founding in 2003, PKF Valuation of Property has successfully completed dozens of valuations for mergers and acquisitions.
✅ We can provide not only valuation of the target business or the newly formed company, but also an assessment of the efficiency of the merger or acquisition. The results will help determine whether the deal is advisable and profitable for both parties.
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