Why does an optimal purchase price go beyond company valuation?

And why is an understanding of strategy and tactics decisive? We increase your purchase price on the basis of a professional company valuation: we quantify synergy potential, sharpen your equity story for each prospective buyer, and create structured competitive tension.

Purchase Price Optimisation and Strategic Premium

A professional company valuation forms the foundation for purchase price optimisation. Well-prepared, strategically managed M&A processes can achieve a purchase price of more than 20% above initial valuation levels, supported by clear synergy arguments, an appropriately targeted buyer universe, and genuine competitive tension.

ARTHOS prepares professional company valuations based on the company’s business plan and relevant market and valuation benchmarks. The purchase price premium, however, is buyer-specific and driven by buyer motivation, synergies and competitive tension in the process. We understand the synergy potential and internal decision-making processes of many buyers. Through parallelised process streams, we create the momentum needed for a successful closing at the best possible purchase price.

Key factors in achieving a strategic purchase price premium:

Does my equity story command a premium multiple?

Do I understand my company’s value and synergy potential from the perspective of different buyer groups?

How can I create competitive tension among prospective buyers?

Conventional Company Valuation & Strategic Purchase Price Premium: From the Company Valuation to a Strategic Purchase Price Premium

Conventional Company Valuation as the Foundation

Additional Value Drivers Leading to a
Strategic Purchase Price Premium

Conventional Company Valuation: Conventional Company Valuation – the Foundation

For a robust company valuation, we combine established valuation methodologies with the professional preparation and presentation of your financial figures. Our work includes, in particular:

  • Normalisation of your historical financials
  • Plausibility review of your financial plan
  • Working capital optimisation
  • Derivation of a market-based valuation range
  • Transparent derivation of the underlying figures, assumptions and arguments

This provides a clear, market-supported view of your company’s stand-alone value and earnings power, forming the foundation for a compelling purchase price rationale in discussions with prospective buyers.

Graphic: Derivation of a market-based valuation range

Strategic Purchase Price Premium: Additional Value Drivers Leading to a Strategic Purchase Price Premium

We analyse the strategic value (synergies) your company offers to different buyer groups, translate this into concrete purchase price arguments, and estimate the value of these synergies.

  • Identification of strategic value drivers (market, technology, capabilities, customers)
  • Mapping of value drivers to relevant buyer types (strategic buyers, private equity, international investors)
  • Tailoring of the equity story to each investor group
  • Estimation of the scale of concrete, evidenced value drivers, for example through synergy cases

Through carefully timed outreach and a process tailored to the needs of prospective buyers, we generate competition among them. This creates the framework needed to achieve a strong purchase price premium for you, based on concrete synergies and competitive pressure.

Do you know your company’s value from a buyer’s perspective?

A confidential initial conversation provides a first assessment of your situation and possible strategic options.

Discuss your valuation potential

Selected Transactions in which ARTHOS Has Realised Strategic Premiums:

We adjust earnings for non-recurring, one-off, or non-operational effects, in order to present a robust, sustainable earnings quality as the basis for valuation multiples (for example, EBITDA multiples).

ARTHOS draws on extensive M&A experience and sector expertise to derive these adjustments in an investor-ready, purchase-price-supportive manner, and to defend them robustly throughout the process.
Discuss the value potential

We examine the consistency and traceability of the financial planning underpinning the equity story, thereby strengthening your negotiating position during the valuation process.

Drawing on its buy-side experience, ARTHOS understands precisely which planning assumptions investors and financing partners are likely to challenge, and prepares the financial planning accordingly, so that it holds up under transaction scrutiny.
Discuss your financial planning

We analyse the operationally required working capital, identify funds that can be released, and derive the liquidity effects relevant to the purchase price (for example, via net working capital/net debt).

ARTHOS helps ensure that working capital effects are not only quantified accurately but also positioned in a way that holds up in negotiation from an investor’s perspective.
Discuss the value potential

The valuation range is derived from established methodologies: trading multiples, transaction multiples, and DCF, each with a transparent derivation of the underlying figures, assumptions and arguments.

Through its combination of sell-side and buy-side experience alongside extensive industry expertise, ARTHOS can assess which valuation levels are market-standard, which arguments hold up during the process, and how investors are likely to weigh them.
Discuss the value potential