Valuation

Build a supported range

Start with a company model that exposes the operating assumptions behind cash flow. Compare its DCF and other supported methods with the Public Company Comps Workbench. Reconcile earnings definitions, debt, cash, noncontrolling interests, and other claims before comparing outputs.

Keep three values separate

• Standalone value: the cash the business can produce under its own operating case.
• Buyer-created value: incremental benefits, costs, timing, and execution risk from combining the businesses. Use the Synergy Underwriting & Value Bridge.
• The offer: the portion a buyer chooses to share with the seller, within the buyer’s funding and return limits.

A peer multiple and a DCF answer different questions. If they disagree, investigate the assumptions instead of averaging away the disagreement.

Carry value into a decision

Record the range, the assumptions that move it, and the evidence that could change the recommendation. Use Capital Allocation & Deal Affordability Tool for the private price ceiling and LOI Economics & Risk Allocator for the bridge from enterprise value to consideration and cash.

For an owner preparing a smaller business for sale, the Exit Desk calculator provides seller-oriented valuation scenarios.

Transaction stages · All ten topics · Downloads

By Mike Ye · Updated September 10, 2026