One of the most common challenges in M&A: Price

A customer recently called to discuss a company they were considering investing in.

The discussions had been going on for months.
Both parties were genuinely interested.

• The buyer was looking for a new source of revenue.
• The seller was looking for a strategic partner with capital to support a new project.

Everything moved forward smoothly —
until the conversation reached one topic: price.

After evaluating the target company, it became clear that the buyer’s price and the seller’s price were far apart.
Very far.

This is one of the most common challenges in M&A:

• Buyers want the lowest possible price to maximize returns
• Sellers want the highest possible price to maximize what they’ve built

Same objective. Different perspectives.

This is often where we get involved —
not to “pick a side,” but to act as a third party to analyze the business and translate expectations into a reasonable valuation range.

#ORNA #Consult #DCF