In this article I will discuss the Best Business Valuation Firms for Acquisitions, which are firms that provide valuation, financial analysis, due diligence, M&A advisory, and transaction support. You will learn about their main features, their acquisition-oriented services, their benefits and their drawbacks.
This guide will help educate businesses on what each valuation firm has to offer in terms of company and asset valuations, transaction values and strategic acquisition opportunities.
Key Points & Best Business Valuation Firms for Acquisitions
| Business Valuation Firm | Explanation |
|---|---|
| Houlihan Lokey | Provides valuation expertise supporting mergers, acquisitions, fairness opinions, and complex financial transactions. |
| Kroll | Delivers independent valuation services for acquisitions, financial reporting, and transaction-related decision-making. |
| Deloitte | Offers valuation advisory services covering acquisitions, mergers, intangible assets, and transaction analysis. |
| PwC | Provides valuation and transaction advisory expertise for acquisitions, investments, and strategic decisions. |
| KPMG | Supports acquisition valuations through financial analysis, due diligence, modeling, and transaction advisory services. |
| Ernst & Young (EY) | Provides valuation services helping buyers assess businesses, assets, risks, and transaction considerations. |
| Lincoln International | Advises companies on valuation, mergers, acquisitions, and strategic investment decisions across industries. |
| Stout | Provides valuation advisory services for acquisitions, fairness opinions, disputes, and financial reporting. |
| B. Riley Financial | Offers valuation and investment banking services supporting acquisitions, transactions, and strategic corporate decisions. |
| Grant Thornton | Provides valuation advisory expertise for acquisitions, transaction planning, financial analysis, and reporting. |
10 Best Business Valuation Firms for Acquisitions
1. Houlihan Lokey
Houlihan Lokey provides valuation and M&A advisory services that can help buyers and sellers navigate an acquisition process. Its valuation work can be helpful in assessing a company’s financial position, market value and transaction considerations with appropriate valuation methodologies.
The firm also renders fairness opinions in transactions that require an independent view on financial terms. Its industry coverage enables valuation analysis to incorporate sector-specific business characteristics, operating performance and market conditions.
Buyers can use valuation analysis to support pricing, negotiation and structuring of transactions for acquisitions, while sellers can use it to understand the potential value of the transaction. Its wider M&A experience can help supplement valuation work during complex transactions.
Houlihan Lokey Features
- M&A Valuation expertise for acquisitions, mergers and strategic transactions.
- provides fairness opinions to support independent evaluation of proposed transaction financial terms.
- Uses a variety of valuation approaches to value businesses in different transaction situations.
Sector specific transaction analysis reflecting sector conditions and business characteristics. - Assists buyers and sellers with valuation, negotiations and transaction planning.
- Manages complex transactions requiring significant financial analysis and specialized valuation experience
| Pros | Cons |
|---|---|
| Strong M&A and transaction valuation expertise | May be less suitable for very small businesses |
| Experienced with complex transactions | Services can require significant professional fees |
| Provides fairness opinion services | Engagements may involve detailed processes |
| Broad industry and transaction experience | Primarily oriented toward sophisticated transactions |
2. Kroll
Kroll provides acquisition-related business valuation services including transaction-related valuation, financial analysis and valuation of tangible and intangible assets. Its work can assist companies in estimating business value by using methodologies appropriate to the company, industry, transaction circumstances and available financial information.
Kroll also helps clients value intangible assets, which can be essential in an acquisition involving intellectual property, customer relationships, technology, brands or other identifiable assets. Its transaction advisory capabilities can link valuation analysis to wider deal requirements.
Acquisition teams can use this information in pricing discussions, due diligence, purchase accounting, transaction planning, and assessing the financial implications of a proposed deal.
Kroll Features
- Delivers business and transaction valuation services for financial assessment in connection with acquisitions.
- Values intangible assets like brand, technology, relationships and intellectual property.
- Supports acquisition teams with financial and operational due diligence.
- Performs financial analysis and modeling to assess business performance and value.
- Offers industry-specific valuation expertise for acquisition considerations and challenges
| Pros | Cons |
|---|---|
| Extensive business valuation capabilities | Comprehensive engagements may be costly |
| Strong intangible asset valuation expertise | Process can involve substantial documentation |
| Supports acquisition-related due diligence | May offer more services than smaller deals require |
| Broad industry expertise | Complex assignments can take considerable time |
3. Deloitte
Deloitte provides valuation advisory and transaction-related services to companies that may be contemplating acquisitions. Its valuation work can cover business valuation, financial modeling, purchase price allocation and analysis of intangible assets.
These services can help acquisition teams understand how the operations, assets, liabilities and future financial expectations of a target company contribute to the transaction value. Purchase price allocation is especially relevant when considering an acquisition where the consideration paid may need to be allocated to identifiable assets and liabilities.
Deloitte’s industry knowledge can also help to bring sector-specific factors to bear in the valuation analysis. This blend of valuation and transaction assistance can provide buyers and sellers with the financial information needed to price, negotiate, structure deals and meet post-acquisition accounting requirements.
Deloitte Features
- Performs purchase price allocation of acquired businesses and identifiable assets.
- Develops financial models to support valuation, forecasting and transaction analysis needs.
- Considers intangible assets relative to acquisition and purchase accounting requirements.
- Provides M&A advisory support from the planning phase through to the closing of the acquisition.
- Applies industry-specific valuation knowledge to different industries and transaction situations
| Pros | Cons |
|---|---|
| Broad valuation and transaction advisory capabilities | Large-firm engagement costs may be higher |
| Strong financial modeling expertise | Processes can be extensive for smaller acquisitions |
| Purchase price allocation capabilities | Multiple service areas can make selection complex |
| Extensive industry knowledge | Smaller deals may receive less specialized attention |
4. PwC
Acquirers, Mergers and Strategic Transactions PwC Valuation and Transaction Advisory Services PwC provides valuation and transaction advisory services to companies involved in acquisitions, mergers and strategic transactions. It may carry out valuation work in connection with acquisitions, including financial modeling, business valuation, purchase price allocation and analysis of intangible assets.
Financial due diligence can provide additional information on revenue, profitability, cash flow, working capital and other financial factors that may affect the value of a target. PwC can also leverage industry-specific knowledge when evaluating companies from different industries.
Valuation analysis can be a useful tool for acquisition teams to price a transaction, negotiate, structure the deal and evaluate the investment. Valuation insights can assist sellers in better understanding potential transaction considerations and preparing financial information needed during the acquisition process.
PwC Features
- Supports business acquisition valuation and pricing and transaction decision making processes
- Provides transaction advisory services related to acquisitions, mergers and other strategic transactions.
- Conducts financial due diligence to evaluate target financial results and risks.
- Develops valuation models based on financial projections, cash flows and market data.
- Performs purchase price allocation for acquired businesses and identifiable assets .
- Offers strategic deal support such as valuation, negotiation and transaction planning.
| Pros | Cons |
|---|---|
| Strong transaction and valuation advisory services | Professional fees may be significant |
| Comprehensive financial due diligence capabilities | Extensive analysis can require substantial documentation |
| Experienced with purchase price allocation | Engagement scope can be complex |
| Broad sector expertise | May be more resources than smaller transactions need |
5. KPMG
KPMG’s valuation advisory and transaction services can help companies that are considering or executing acquisitions. Its valuation work could consist of businesses, assets and other components relevant for the determination of transaction value.
Financial analysis and due diligence enable acquisition teams to analyze historical performance, financial forecasts, cash flows, assets, liabilities, and other factors influencing valuation. Transaction support from KPMG can also link valuation findings to wider M&A needs. Industry knowledge is relevant to the assessment of market conditions, operating characteristics and financial expectations relevant to the sector of the target company.
Such services can help buyers with pricing and investment analysis . Sellers can use valuation information to prepare for negotiations and gain an understanding of the financial considerations of a transaction .
KPMG Features
- Valuation services for businesses, assets and acquisition-related transactions.
- Supports M&A transactions, including valuation, financial analysis, and transaction advisory.
- Undertakes financial due diligence to examine target performance, assets, liabilities and forecasts.
- Uses financial analysis and valuation methodologies to determine transaction value.
- Provides technical expertise in the industry to evaluate factors and conditions related to acquisition in the sector.
Offers transactional planning support including valuation analysis, financial insights and advisory.
| Pros | Cons |
|---|---|
| Comprehensive valuation advisory capabilities | Costs can be higher for detailed engagements |
| Strong financial analysis and due diligence | Acquisition processes can involve significant documentation |
| Broad industry coverage | Smaller transactions may not require full capabilities |
| Supports multiple transaction stages | Complex projects can take longer to complete |
6. Ernst & Young (EY)
Ernst & Young (EY) provides valuation and transaction advisory services that can assist businesses with acquisitions and strategic deals. Its work in acquisitions may include business valuation, financial modeling, due diligence and analysis of tangible and intangible assets.
Valuation models can be useful to assess expected cash flows, business performance, market conditions and other factors impacting the estimated value of a target. Intangible assets may be significant in acquisitions involving technology, intellectual property, customer relationships or well-established brands.
EY’s industry knowledge can help to bring sector-specific issues to the transaction analysis. These services may help buyers with investment evaluation and pricing negotiations, and help sellers prepare financial information and transaction issues.
Ernst & Young (EY) Features
- Offers transaction advisory services for acquisitions, mergers and other strategic transactions.
- Creates financial valuation models assessing projections, cash flows and market conditions.
- Supports due diligence through analysis of financial information and transaction considerations.
- Valuing intangibles such as technology, intellectual property, brands and relationships.
Translates industry-specific transaction analysis into sector-specific acquisition needs and conditions.
| Pros | Cons |
|---|---|
| Strong acquisition and transaction advisory expertise | Professional services can be expensive |
| Advanced valuation and financial modeling capabilities | Detailed engagements may require extensive information |
| Intangible asset valuation experience | Large-firm processes can feel complex for smaller deals |
| Broad industry specialization | Full-service capabilities may exceed smaller deal requirements |
7. Lincoln International
Lincoln International is very strong in M&A advisory and transaction services, so the valuation-related expertise is relevant to acquisition planning and execution. Its work can help buyers and sellers assess transaction value, financials, market fundamentals and business fundamentals.
This expertise in the middle market is especially relevant for companies looking for advice on acquisitions, sales and strategic transactions in the middle market. Industry specialization can help incorporate operating and market factors specific to a transaction in a sector.
Buyers valuation and M&A advisory can assist with target evaluation, pricing, negotiations and transaction strategy. The analysis can help sellers estimate possible market value, prepare for negotiations with buyers, and evaluate strategic options in an acquisition process.
Lincoln International Features
- Provides M&A advisory services, including acquisitions, divestitures and strategic transactions.
- Offers business valuation and transaction valuation expertise and considerations.
- Has a strong focus on middle market transactions that require specialized financial and advisory expertise.
- Industry specialization to support valuation and transaction analysis requirements of specific industries.
- Represents Buyers and Sellers in acquisition negotiations and transaction processes.
- Conducts financial and deal analysis to assist pricing and transaction decisions
| Pros | Cons |
|---|---|
| Strong M&A advisory experience | Primarily focused on transaction-oriented engagements |
| Established middle-market expertise | May be less suited to very small businesses |
| Industry-specific transaction knowledge | Services can involve substantial transaction preparation |
| Supports buyers and sellers | Complex transactions may require lengthy analysis |
8. Stout
Stout offers business valuation and M&A advisory services that can assist with financial analysis related to acquisitions. Its valuation work can help you estimate the value of a business or particular assets using methods that are appropriate to the company and the transaction. The firm also provides fairness opinions, which can offer an independent financial assessment of transaction terms when needed.
Operating performance, future cash flows, market conditions, and other factors pertinent to acquisition value can be assessed through financial modeling and transaction analysis. In addition, industry expertise from Stout can further support analysis of sector-specific characteristics. These capabilities can help buyers and sellers with pricing discussions, transaction analysis, negotiation and complex valuation assignments related to acquisitions.
Stout Features
- Offers business valuation services for acquisitions and strategic transactions.
- Provides M&A advisory support in transaction analysis, negotiations and strategic planning.
- Provides fairness opinions, which provide independent assessments of the financial terms of proposed transactions.
- Builds financial models to aid in valuation and deal decisions.
- Analyzes complex transactions that require specialized financial and valuation expertise.
- Brings industry-specific valuation knowledge to a variety of acquisition situations and industries.
| Pros | Cons |
|---|---|
| Strong business valuation expertise | Specialized services may carry higher costs |
| Provides fairness opinion services | Complex assignments require detailed financial information |
| M&A advisory capabilities | Smaller businesses may need fewer services |
| Experienced with complex valuation assignments | Transaction processes can be time-intensive |
9. B. Riley Financial
B. Riley Financial offers valuation advisory and investment banking services that may be of interest to companies considering acquisitions or other strategic transactions. Its business valuation capabilities can be utilized to determine the financial value of a target company based on the relevant financial and market information.
Investment banking & M&A support can add transaction strategy considerations, financial analysis and deal execution to a valuation analysis. The firm’s transaction services can help companies assess acquisition opportunities and understand the financial impact of potential transactions.
Industry coverage allows for examination of valuation by business sector differences. For acquisition teams, these services can help with target evaluation, pricing discussions, financial analysis, negotiations and broader transaction planning.
B. Riley Financial Inc. Features
- Offers business valuation consulting for acquisition and strategic transaction decisions.
- Offers investment banking services for acquisitions, financing and corporate transactions
- Provides M&A transaction support including analysis, negotiations and execution of deals.
Performs financial analysis to identify issues with business, performance and transactions. - Advises on transactions to support acquisition planning and financial evaluation.
Provides industry-specific expertise to support sector-specific valuation and transaction needs
| Pros | Cons |
|---|---|
| Combines valuation and investment banking services | Service requirements can vary by transaction |
| Provides M&A transaction support | Complex deals may involve substantial analysis |
| Offers financial analysis capabilities | Smaller acquisitions may not require extensive advisory |
| Supports strategic transaction planning | Engagement costs depend on scope and complexity |
10. Grant Thornton
Grant Thornton offers valuation advisory and transaction-related services that can assist companies in evaluating businesses involved in acquisitions. Its valuation work might include business valuation, financial modeling, and analysis of tangible and intangible assets.
Due diligence also allows buyers to review a target’s past performance, forecasts, cash flow, assets, liabilities and potential transaction considerations. More financial information can be obtained through due diligence. The valuation of intangible assets can be of particular importance in case of an acquisition involving technology, intellectual property, customer relationships or brands.
Industry expertise can be used to include sector-specific factors in the analysis. These services can support valuation, pricing discussions, transaction planning and financial decision-making for acquisition teams and they provide structured analysis of a proposed acquisition.
Grant Thornton International Features
- Provides acquisition valuation advisory to support pricing and investment assessment decisions.
- Provides business valuations for acquisition and strategic transactions.
- Creates financial models to address business valuation and transaction analysis requirements.
- Conducts due diligence support in the review of financial performance, assets, liabilities and forecasts.
Values intangible assets for acquisition accounting and transaction analysis. - Industry-specific transaction analysis, sector conditions and individual business characteristics.
| Pros | Cons |
|---|---|
| Strong business valuation capabilities | Detailed engagements can involve higher professional costs |
| Provides acquisition-related due diligence | Requires substantial financial information |
| Offers financial modeling expertise | Smaller deals may not need comprehensive services |
| Experience valuing intangible assets | Complex transactions can require significant analysis |
Conclusion
In conclusion, Picking the Best Business Valuation Companies for M&A depends on deal size, industry, valuation needs, due diligence needs and advisory support. There are different capabilities provided by companies like Houlihan Lokey, Kroll, Deloitte, PwC, KPMG, EY, Lincoln International, Stout,
B. Riley Financial and Grant Thornton. Businesses can identify suitable professional support for acquisition decisions by evaluating their valuation expertise, transaction experience, methodologies, services, costs, and scope of engagement.
FAQ
What are business valuation firms?
They professionally assess a company’s value using financial, market, and industry data.
Why is valuation important for acquisitions?
It helps buyers and sellers understand potential transaction value and pricing considerations.
What services do these firms provide?
Common services include business valuation, financial modeling, due diligence, and M&A advisory.
What affects acquisition valuation?
Revenue, profitability, cash flow, assets, liabilities, market conditions, and industry factors can influence valuation.
Do firms value intangible assets?
Yes, many assess intellectual property, brands, technology, and customer relationships.
