The buyer is insisting on a pure Market Approach under IVS 105 using regional competitors that lack our proprietary technology, which drags our valuation down. How do we use a multi-method approach to force them to blend the Income Approach and recognize our superior cash-flow predictability?

Question

Tyler Smith · Accepted Answer

Standard market multiples are designed for average businesses. If you have spent years building custom tech, automating workflows, or optimizing your cash cycle, comparing your business to local competitors is a mistake. Under IVS 105, you have the right to demand a valuation that reflects the nature of your specific asset.

We recommend using the Ankura quantitative valuation framework to build a regression-based model that proves your metrics align with higher-performing peers, rather than local laggards. Show how your lower risk profile and predictable cash flows justify a premium.

At the same time, prepare a detailed Income Approach model, specifically the discounted cash flow method, using conservative, data-backed assumptions. Highlight how your technology acts as an economic moat that guarantees recurring revenue and high margins.

Present these two methods side-by-side to the buyer. Explain that a pure Market Approach fails because the peer group does not share your operating leverage.

If they want to buy your business, they must pay for the cash flows they are actually acquiring. This approach moves the conversation away from subjective haggling and anchors it in international valuation standards. It forces the buyer to negotiate on the reality of your numbers, not the mediocrity of your competitors.