S3.E5 - Valuation frameworks, risks, and deal mechanics in M&A

In the fifth episode of our Trend Talks, hosted by Mark Tabone and featuring insights from Eric Mackay and Ian Abela in our Advisory Deals team, we delve into how valuation shapes successful M&A. We discuss key methods: income approach (DCF), market comparables, and net asset value. We also explore how to adjust projections for risk and the importance of benchmarking against past earnings and sector multiples. We highlight differences between asset-heavy FMCG/Distribution and asset-light tech/IP sectors, and how valuations transition through due diligence into SPA mechanics. When buyer and seller perspectives differ, we present practical solutions like earn-outs and vendor financing to close the gap.