Synergy Subworld of Market Value

The synergy subworld reflects the market reality that the highest value for many businesses is found by selling to a strategic buyer. This chapter describes the key tenets of the synergy subworld and illustrates the market value process for the synergy subworld. The chapter also highlights the synergy types, which merely are the synergies with quantifiable certainty, may be available to the parties in a deal. Further, the chapter indicates the capitalization and discounting of benefit streams synergy. An interesting phenomenon, known as value perspective, occurs frequently in the world of market value regarding discounting benefit stream. Value perspective occurs when a seller values his/her company by capitalizing strategic or synergistic benefit streams and the buyer discounts the stream. Sellers and buyers naturally view market valuation from opposite sides. The chapter explains quantitatively the seller value perspective and buyer value perspective.