When planning an enterprise purchase or sale transaction, each of the parties is interested to know how much this enterprise is worth. If both the buyer and the seller are determined to conclude the agreement and their relations are based on mutual trust, they often decide to carry out only one valuation and entrust its preparation to an external and independent consultant. The outcome of such valuation is usually a single value, achieved according to the fair value measurement standard.
A consistent opinion on the value of an enterprise leaves no room for negotiation between the parties to the transaction, which definitely hinders a successful closure of the transaction.
What really causes that contemporary market for corporate control is so active and abounds in numerous M&A transactions?