What a value story is and is not. The eight questions every buyer, from private equity to a strategic acquirer, wants answered before they will pay a premium.
Approximately 70 to 75 per cent of acquisitions worldwide fail to achieve their stated objectives, based on analysis of more than 40,000 deals over 40 years (Fortune/Gu and Lev).
The eight qualitative dimensions private equity firms assess before bidding, from management depth to customer concentration, in a market where 80 deals are reviewed per investment.
How sophisticated buyers think about downside risk and upside optionality, and the categories of concentration risk, customer to key person, that trigger the closest scrutiny.