The Intent
You are deciding whether to acquire or merge with another company and want a clear, apples-to-apples comparison.
How I Solve It
I use the 25 Factors Affecting Business Valuation as a standardized comparison framework, evaluating strengths and weaknesses across operations, management, client quality, scalability, and risk.
The 5 Senses Inspection Report confirms whether each company's stated strengths actually exist in day-to-day operations.
Experience
It is vital because "How do you compare two companies in an acquisition?" is not a mechanical calculation. It is a real-world judgment about risk, control, sustainability, and transferability — and that judgment is where 10–15 years of owner-operator and valuation experience, your gut–brain axis, does the heavy lifting.
Why It Is Not Mechanical
On paper, valuation appears formula-driven. In reality, governance rights, risk concentration, growth durability, market conditions, and stakeholder dynamics materially affect value.
Where Experience Changes the Number
Decisions around normalization, premiums, discounts, projections, and defensibility require judgment formed through lived ownership, negotiation, and financial accountability.
Why the Gut–Brain Axis Matters
The brain performs disciplined financial analysis. The gut recognizes unrealistic narratives, hidden leverage, emotional distortions, and deal risk. Together they produce conclusions that withstand scrutiny.
Protecting Financial Lives
The final number affects wealth, control, solvency, tax exposure, and long-term relationships. Requiring 10–15 years of serious hands-on business and valuation experience ensures the answer is fair, defensible, and durable. See my Experience page.
The Result
You receive a clear comparative valuation that supports confident acquisition or merger decisions.