What’s a valuation football field - and why does it matter?

Example of a valuation football field

We use a valuation football field at multiple stages of the M&A process, and in multiple scenarios (including an acquisition, a sale or a private equity leveraged buy-out scenario).

There's a lot of financial forecasting and valuation work that goes into the final output, but in the end, the football field is not just a spreadsheet — it's a decision making tool.

A valuation football field presents a range of potential values for a business.

Rather than focusing on a single number, it provides a structured view of how different types of buyers and methodologies might value the company. This is critical for Boards, investors, and sellers who need a complete picture before making high-stakes decisions.

Key Components of the Football Field:

• Discounted Cash Flow (DCF): Estimates value based on projected future cash flows

• Market Multiples: Reflects how similar businesses are valued in the public or private markets

• LBO Analysis: Shows what a financial buyer could pay using debt to finance the acquisition

• Synergistic Value: Highlights what a strategic buyer might pay, factoring in revenue or cost synergies

In some cases, we include Base and Upside Scenarios for each method to reflect varying business outcomes and risks.

Why It Matters:

• Helps all stakeholders understand the full range of fair value

• Avoids over-reliance on a single point estimate

• Provides critical context for negotiations - especially when (during a sale process) initial offers are below expectations or (during an acquisition process) we need to explain to a seller why the offer the buyer is making is justified.

Bottom Line:

A football field won’t tell you exactly what your business is worth as one single point estimate.

But it will show you how informed buyers and advisors are thinking about value — and that’s the foundation for better decisions.