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  • Mergers and Acquisitions/Exit Planning - QuickRead Top Story

    M&A Multiples: Business Value v. Balance Sheet Value

    February 27, 2013

    Buyers and Sellers Need to Negotiate Delivery Targets for Working Capital and Agree on a Fair Market Value for Fixed Assets. Valuation principles generally hold that the value of a business is largely a function of return on invested capital and growth, writes Ron Stacey, since these are the primary drivers of free cash flow. But how does this cash flow relate to the asset and liability values on the balance sheet?

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