The Art of Establishing a Transaction Price Target

We often emphasize the importance of a formal business valuation in the M&A process. While such valuations are incredibly useful, they are only part of the equation. At CRI M&A Advisors, we often remind clients that setting an optimal M&A transaction price is as much art as it is science.

This post focuses on the strategic and intangible factors that can enhance the final sale price of your company—elements often overlooked by spreadsheets, but valued highly by the right buyers.

Understanding the Two Drivers of Transaction Value

To achieve maximum valuation in a sale, two key perspectives must be considered:

• Internal intangibles that enhance your company’s appeal

• The acquirer’s profile and strategic fit

Both play a crucial role in shaping how buyers perceive and value your business.

Intangible Business Attributes That Boost Value

Beyond the balance sheet, certain characteristics can significantly raise buyer interest and willingness to pay. These include:

• Brand recognition and market positioning

• A strong, committed management team

• Scalable growth channels or untapped opportunities

• Valuable customer relationships or market access points

• Proprietary advantages or product/service differentiators

These assets tell a story of long-term potential—critical for justifying premium offers.

Tip: Highlighting these intangible drivers in your offering memorandum or CIM can change how buyers frame their valuation.

Why Acquirer Profile Matters in M&A Pricing

Identifying strategic buyers with a reason to buy can shift the pricing discussion dramatically. The most lucrative buyers aren’t always those with the deepest pockets, but those with the most to gain.

Key acquirer traits to target:

• Established presence in your market or vertical

• Operational experience in your niche

• Product or customer overlap that enables synergy

• Integration potential or cost-saving opportunities

  
  

These attributes create a scenario where the buyer sees your business not just as an investment—but as a strategic lever.

Strategic Advisory Makes the Difference

No advisor can guarantee “maximum value,” but the right one can get you closer by:

• Uncovering and positioning value-rich intangibles

• Identifying and connecting with strategically aligned acquirers

• Framing the narrative that supports a higher multiple

At CRI M&A Advisors, we focus on both the science of valuation and the art of positioning. That’s how we help our clients maximize their outcomes.

Want to go beyond the numbers and position your company for a premium outcome? Let CRI M&A Advisors help you align with the right buyer at the right price.