“Does your business valuation reflect the actual performance after the M&A deal?”

A customer asked me this today.

Short answer: No — we don’t usually go and check.

The thing is a valuation isn’t a crystal ball.
It doesn’t tell you exactly how the business will perform.

What it does give you is a logic-based price range built from assumptions, scenarios, and the information available at that point in time.
Our job as a third-party advisor is to:

• review the inputs
• challenge the assumptions
• highlight risks
• build scenarios
• and translate all of that into a reasonable value range.

It’s a tool for buyers and sellers to check the logic, not a guarantee of future performance.

Once Company A acquires Company B — and B is fully merged into A — it becomes almost impossible to measure B’s standalone performance afterward.
The operations are mixed, the teams are merged, and the financials are consolidated.
There’s no separate “B only” P&L anymore.

So was the valuation “accurate”?
We’ll never know in a clean, isolated way — and that’s normal.

A valuation is not about predicting the exact future.
It’s about giving you a structured view of what could be reasonable today.

— ORNA Company Limited

#ORNA #M&A #Investment #DCF