Five Things to Know about Business Valuation When Making an Acquisition —Smart Business Reviewed by Momizat on . Beyond Deal Price, Consider Deal Structure, Earnouts, and Appropriate Standard of Value    When one company is acquiring another, the deal price is often the pr Beyond Deal Price, Consider Deal Structure, Earnouts, and Appropriate Standard of Value    When one company is acquiring another, the deal price is often the pr Rating:
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Five Things to Know about Business Valuation When Making an Acquisition —Smart Business

Beyond Deal Price, Consider Deal Structure, Earnouts, and Appropriate Standard of Value   

When one company is acquiring another, the deal price is often the primary factor considered. Too many times, however, critical issues are overlooked, explains Sean R. Saari, CPA/ABV, CVA, MBA.  Smart Business spoke with Saari about five questions any business valuation any acquirer needs to consider:  

  1. What is the appropriate standard of value to consider in an acquisition scenario?
  2. Can the structure of an acquisition impact the price paid for the target company?
  3. How are earnouts accounted for?
  4. What other accounting requirements must be addressed when an acquisition is made?
  5. What are the potential issues if you overpay for an acquisition?

 Read the full piece for detail on each point.  

When  acquiring a company, consider not only deal price, but deal structure, value standard, and earnouts accounting. 

 

The National Association of Certified Valuators and Analysts (NACVA) supports the users of business and intangible asset valuation services and financial forensic services, including damages determinations of all kinds and fraud detection and prevention, by training and certifying financial professionals in these disciplines.

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