According to a recent study from Pepperdine University’s Private Capital Markets Project, the number one reason for failed deals is a valuation gap in pricing.
This study highlights the importance of valuation when it comes to successfully completing a transaction. The Pepperdine study showed that among investment banks surveyed, a valuation gap was by far the most common reason for a transaction to stall.
Business owners thinking about a transaction should always be considering the value of their business. In fact, determining value and working toward goals to increase business value should begin long before an ownership transfer is explored.
For the full report and analysis on the Pepperdine study, please see a click here and download the Pepperdine University 2014 Capital Markets Report.