{"id":878,"date":"2011-09-05T10:58:18","date_gmt":"2011-09-05T08:58:18","guid":{"rendered":"http:\/\/skarpa.hosting.igomoon.com\/en\/?p=878"},"modified":"2023-07-04T21:16:12","modified_gmt":"2023-07-04T19:16:12","slug":"pre-bid-valuation-buyer-dilemma","status":"publish","type":"post","link":"https:\/\/skarpa.se\/en\/pre-bid-valuation-buyer-dilemma\/","title":{"rendered":"Pre-bid valuation &#8211; a buyer dilemma"},"content":{"rendered":"<div class=\"intro\">\n<p>I&#8217;m starting to realise that I\u00a0work in a malfunctional marketplace (mergers &amp; acquisitions)\u00a0where the buyer and the seller has limited knowledge about the opportunities and risks in a transaction. Not that this comes as a surprise, I have made it my career\u00a0helping both buyers and sellers bridge differences in information and expectations, and I have become good at it.<\/p>\n<\/div>\n<div class=\"contents\">\n<p>Consider the simplicity of buying\u00a0a share at the stock exchange, and more important, the simlicity when the remorse hits you to trade it back with minimal loss. The unquoted market for company shares is a whole different game. Here both buyer and seller is spending a lot of money and time to make sure that no mistakes are made in a, often, competitive salesauction.\u00a0 The number one issue for the buyer is to value the target company without really have enough information at hand. A very difficult task. Therefore professional advisors on both the buyer and seller side is needed. In USA normally defined as &#8220;intermediaries&#8221;.<\/p>\n<p>In Sweden there is a huge gap between the professionalism and in-depth knowledge of investment bankers and small-cap business brokers. This tend to create a huge gap between the Seller side and the Buyer side. More importantly, the Seller side do not always understand how to bridge the information gap in order to support the valuation of the target company. The solution for both\u00a0the buyer and the seller is to refer to typical multiples in order to safely price the target company. How many times have I heard that a company is worth 4-5 times the profit?\u00a0Even without defining which profit or what sort of value we are talking about.\u00a0The information gap and the expectation gap goes hand in hand. Usually a loss for both the buyer and the seller as many transactions\u00a0are abandoned!<\/p>\n<p>We need better intermediaries and business brokers in order to take away unnecessary friction in the marketplace!<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>I&#8217;m starting to realise that I\u00a0work in a malfunctional marketplace (mergers &amp; acquisitions)\u00a0where the buyer and the seller has limited knowledge about the opportunities and risks in a transaction. Not that this comes as a surprise, I have made it my career\u00a0helping both buyers and sellers bridge differences in information and expectations, and I have [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-878","post","type-post","status-publish","format-standard","hentry","category-nyheter-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/posts\/878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/comments?post=878"}],"version-history":[{"count":1,"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/posts\/878\/revisions"}],"predecessor-version":[{"id":4485,"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/posts\/878\/revisions\/4485"}],"wp:attachment":[{"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/media?parent=878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/categories?post=878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skarpa.se\/en\/wp-json\/wp\/v2\/tags?post=878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}