Why is a Business Valuation needed when conducting a business merger or sale?

There comes a time when business people have to make a choice about the future of their enterprises. Some of them consider selling their businesses while others would make merging with another company one of the options on the table. During such a time, a business valuation becomes crucial to the company and its shareholders. Determining what a business is worth is however not only crucial to the company about to be sold or merged with. On the contrary, having a business valued offers considerable interest to the parties considering merging or buying out the business. In this article, we will look at a few reasons why this is true.

5 Key Elements of a Successful Merger or Sale

Good businesses do not stagnate, they grow and expand the breadth of the good and services they offer. Business owners recognize this fact and opt, every once in a while, to engage in corporate restructuring to enable the survival or rejuvenation of their organizations. They may choose to merge or acquire another business, or simply sell their companies to others. With a merger or sale, several key factors play a factor in whether the transaction is classified as successful or not. Read on to find out which five elements are attributable to successful mergers and sales.