A perfect set of conditions is aligning to continue and possibly even raise M&A activity levels in 2017. Public company valuations are at an all-time high, as evidenced by the DJIA recently surpassing 20,000. Strategic and private equity investors have ample cash ready to invest. Favorable changes to tax policies are anticipated, which could further unlock cash available to fund deals. But even in light of these positive factors, acquirers face an increasingly competitive, regulated and highly scrutinized business climate.
Image source: The Blue Diamond GalleryIn this favorable deal environment, corporations that are ramping up and pursuing their acquisition strategies are finding that it is critical to embed an independent valuation partner into their deal team. Organizations need to get to the right values that will meet the needs of all stakeholders and will stand up to audit and regulatory scrutiny.
VRC discussed M&A-focused valuation challenges with corporate development, financial and tax professionals of publicly traded companies. Download the whitepaper to read the knowledge gained from these conversations that identifies the diverging interests of deal stakeholders, the valuation issues they face, and learn solutions that can help impact your next deal transaction.
This article represents the author’s views only and doesn’t necessarily represent the views of PitchBook.
Article by PJ Patel, CFA, ASA, Co-CEO VRC – PitchBook
