Business owners often focus on growth, but value at exit is determined by how buyers assess risk, sustainability, and deal structure.
In this webinar, Marshall & Stevens and Shields Legal Group explain how enterprise value is defined, what affects valuation multiples, and how preparation before a sale influences transaction outcomes.
Watch Below
Speakers
Martin Hanan, Managing Director, Marshall & Stevens
Michael Hanan, Senior Manager, Marshall & Stevens
David Shields, Co-Managing Shareholder, Shields Legal Group
Overview of the Discussion
The session explains how value is measured and realized in a transaction.
The speakers outline the distinction between enterprise value and equity value and how valuation approaches—including income, market, and cost methods—are applied. They also note that value changes based on financial performance, growth expectations, risk profile, and transaction structure.
The discussion then shifts to preparation. The panel describes how financial reporting, legal readiness, and operational clarity affect buyer confidence and negotiation dynamics.
What You’ll Learn
- How enterprise value differs from equity value
- What drives valuation multiples in a transaction
- How buyers assess risk, growth, and sustainability
- What to prepare before going to market
- Common issues that delay or reduce deal value
Key Takeaways
The speakers highlight several issues that affect transaction outcomes:
- Valuation is influenced by both financial performance and how risk and deal structure are evaluated
- Enterprise value does not directly translate into equity proceeds without considering capital structure
- Buyers rely on diligence materials to validate assumptions and pricing
- Early preparation improves positioning during negotiations
They also describe issues that arise late in a process, including incomplete financial documentation, unresolved legal matters, and misalignment between buyer and seller expectations.
Why Preparation Matters
The speakers emphasize that preparation in advance of a transaction affects both process and outcome.
Companies that address diligence issues earlier are better positioned to:
- Navigate negotiations with fewer disruptions
- Maintain leverage in pricing discussions
- Avoid delays or changes to deal terms during diligence
