The Q1 2017 Market Pulse Survey found that almost half of advisors expect a decrease in valuations, and about 40% predict a decrease in the buyer pool. The study looked at businesses in the lower middle marke...
Mark Cuban, the billionaire business man who has had his ups and downs with public companies, recently spoke on stage at the Upfront Summit in Los Angeles to voice his concern about the lack of tech IPOs.
“I don’t understand the reticence to going public,” he said. “It’s just plain stupid.”
After a slow 2016, many are looking at Snap, Inc. to jump start tech IPOs in 2017.
If you have ever tried to buy or sell a business, you have probably been on one side of a conversation regarding valuation. Buyers are motivated to avoid overpaying for a target company while sellers want the highest valuation possible. This difference in natural desires of buyers and sellers creates what is generally referred to as a valuation gap.