Corporate action events such as mergers, acquisitions and disposals are events that necessitate strong rationale when it comes to the true market value of the underlying business asset.
The absence of a business valuation report weakens negotiating ability which can lead to an undesirable result or a potentially lucrative opportunity being foregone.
An independent and external view of both businesses is a strong ally in levelling the playing field in merger and acquisition discussions. This can be key to forming a common ground on which to discuss what the parties are bringing to the discussion in terms of base value and, more importantly, how the business plans to expand further beyond the merger.
There are few more polarised discussions than those involving the sale of a business. Knowing the value of the asset being traded is key and understanding that value is paramount. An objective and independent view can be invaluable in ensuring that you are armed with as much information as possible in such a negotiation.