The QT negotiation should never fall apart over price. What really matters is the value of the financed amalgamated company, whether there is secondary support for the stock post QT and plans to move past the TSX-V.
The Value of Independent Valuation Reports When Selling a Business: Not Much.
Bullish financial projections do not attract a higher price for a business. In fact, they speak to lack of credibility of the vendor and their advisers and potentially damage the functioning of the auction.
Our experience is that corporate structures purely designed for tax minimization often reduce shareholder value.
Establishing a price for investment with a VC is a difficult experience. It is always helpful for an entrepreneur to understand how a VC approaches a valuation.
