Regardless of economic circumstances, businesses are always part of a living organism, the economy. In this context, organizations evolve, expand, change form, merge with other organisms, are redeemed. Perhaps the hardest part is the phase of negotiation between organizations when it comes in any way to jointly create a new unit. The difficulty lies in the accurate estimation of the value of each business, as it is not limited to its property, but it is associated with intangible elements, for example its reputation. It is even harder to convince a potential partner that this value is real. Negotiations on takeovers, however well-intentioned, are governed by suspicion. Not so much for the intentions of the other parties, as for the information deficit that exists for the real economic situation of another organization. It is no coincidence that even banks in all funding cases recognize a risk titled ‘ Asymmetric Information ‘, which simply means that they do not know exactly what the client company knows.
By attempting to limit this risk, Wise Advice offers the Business appraisal service after a thorough check and based on objective criteria. It also enables the company to participate throughout the negotiation process, in order not to become a deadlock and to be abandoned by minor disputes between the parties.
- Date: December 17, 2019