Bridging Valuation Gaps with Creative Deal Structures
Iliya Zogovic, President & CEO, ONEtoONE Corporate Finance
Every seller has a number in their head, and it is rare that buyers agree with that number. The seller focuses on the potential of the business and all the opportunities that lie ahead, while the buyer needs to think about the downside and cover all of their bases. Thus, a gap arises between what the seller expects and what the buyer is willing to pay. However, this gap doesn't need to be the end of the relationship, as you can build creative deal structures to bridge this valuation gap.