Valuations in the middle market

Transactions often fail on lack of preparation and unrealistic valuation expectations

“We see many middle market owners and international buyers enter discussions without proper preparation and thus encounter high transaction risk” says Wilhelm Bollmann, Bollmann, Spielmann & Kollegen.

A company sale needs to be well prepared: what am I selling, what is nature of the business I am selling, how does my value expectation compare to prices paid in the market.

“Prices paid in transactions can fluctuate massively even within a sector e.g. we saw bids ranging from 6x EBITDA to 25x EBITDA in a sale in the industrial space” says Ervin Schellenberg, Capitalmind Investec. Download the full interview