Ask the Advisor – Q: What’s the “walk-away” price and how do I determine it?

Description

Abstract: This article advises both business buyers and sellers to set a “walk-away price” before beginning deal negotiations. For sellers, anything below the walk-away price grossly undervalues the company’s assets and earnings. A buyer’s walk-away price indicates that the acquisition no longer makes financial sense to the buyer given expected costs and synergies.