The Legal Intelligencer published an article by Advisory Partner Sean Saari, about why all values are not created equal when it comes to disputes and negotiations.
The Legal Intelligencer
By Sean Saari, Partner, Advisory Services
Excerpt:
All values are not created equal—a company’s “equity value” can be vastly different from its “enterprise value,” which may differ from its “invested capital value.” Therefore, whenever reviewing or discussing a company’s value, it is important to establish what type of value is being determined. This will greatly reduce the likelihood of miscommunication, making it far more likely that disputes will be resolved as effectively as possible; and the parties involved in M&A transactions will have appropriately managed expectations regarding value and net proceeds from the outset.