Valuation Fails That Could Sink Your Exit
Miscalculating your company’s value can derail an exit before negotiations even start.
Avoid these common valuation pitfalls in the months and years leading up to your exit:
> Stale Comparisons. M&A landscapes evolve rapidly. Regularly benchmark your company against the latest deals in your sector.
> Optimism Bias. Be realistic about future growth based on historical trends, or seek strategic partners early to boost your trajectory.
> Wrong Valuation Method. Applying inappropriate valuation frameworks can overvalue or undervalue a business. Consult experts on the best model.
> Weak Exit Plan. Different buyers may value your company differently. Understand your optimal acquirer profile before starting the process.
If you plan to exit within a couple years, unrealistic expectations or lack of preparation could undermine your valuation. Avoid valuation fails for a smoother exit.
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