Valuation Challenges: The Management-led Going Private Transaction

January 5, 2017

In a recent Journal of Business Valuation publication, Blair Roblin, Managing Director with the Corporate Finance & Valuations practice, discusses the procedural and valuation challenges when a small public company undertakes the process of going private.

The focus of the article, as Blair notes, “…is the situation where management is attempting to take control of the firm, whether with a financial partner or not, by buying out minority shareholders.”

He expands on the valuation challenges associated with going private transactions and points out that, “A potential conflict here arises because the management group have an incentive to purchase at the best possible price, though no real incentive to emphasize the income potential of the business if that would have the effect of increasing the price.”

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Blair Roblin is a Managing Director with the Corporate Finance & Valuations practice of Farber. He has more than 25 years’ experience working with mid-market clients where his extensive consulting and advisory expertise helps ensure seamless, efficient transactions. Blair can be reached at 416.496.3074 and