Why Valuations Matter (Third of a Series)

“The value of a thing sometimes lies not in what one attains with it, but in what one pays for it – what it costs us.” – Friedrich Nietzsche

In last week’s installment of our continuing special series, we discussed how critical time is to driving value. This week we take a deeper look at strategies private equity sponsors use to give them the best chance to maximize value for their shareholders.

“The key is setting the right strategy to control the valuation dynamics in this market,” the capital markets partner of one top-tier firm told us recently.

“In this environment,” he continued, “sponsors need to employ bespoke strategies to communicate to sellers. It’s a carefully crafted message that says we are the kind of partner you want to sell to and work with over time to create more value.”