Strategic purchase prices for corporate acquisitions

Strategic purchase prices - example: Dell/HP and 3Par 2.9.2010:

The bidding war between Dell and HP for the company 3Par shows how a seller can use a (supposed) unique selling proposition as well as competition in the sale of a company to achieve a company valuation that is not rationally comprehensible using any valuation methods. 3Par is active as a provider in the field of data storage and benefits from the current hype around the topic of "cloud computing".

Neither a discounted cash flow valuation nor valuations from comparable M&A transactions can be used to justify the purchase price for 3Par: USD 2.4 billion for a company with annual sales of USD 194 million that does not generate profits!

Company valuations - strategic company valuations

These are company valuations, as in the days of the Neuer Markt, when even the smallest small business was valued in the billions. Other takeovers at such high valuations, which are no longer comprehensible through valuation procedures, have often been a bad investment in the past. One could list many examples here - one of them is the takeover of Skype by Ebay.

Buyers should be aware of the fact that at the time of a takeover it may look as if this acquisition is the only/last possibility to enter a market. Technologies and markets change very quickly and a few years later the situation looks completely different and new, and often better, opportunities have appeared on the horizon.
    Contact KP Tech Corporate Finance M&A Advisory Germany Austria Switzerland

    Do you need a company valuation?

    We prepare professional and practice-oriented company valuations using the discounted cash flow method (DCF method) as well as subjective valuation methods ("multiple method" or "practitioner method").

    Contact us in strict confidence at

    Phone +49 89 21536609-0
    Contact form


    KP TECH Beratungsgesellschaft mbH
    Maximilianstr. 2
    80539 Munich / Germany
    Further offices in Berlin, Frankfurt/Main, Duesseldorf

    Phone +49 89 21536609-0
    Contact form

    About us

    München • London • Philadelphia

    KP Tech has been providing consulting services for more than 20 years with a focus on company acquisitions, company sales, company succession, equity capital and company valuation. Our clients include small and medium-sized companies as well as international groups and private equity companies. Most of our clients come from the technology, services and consumer (including e-commerce) & healthcare sectors.


    KP Tech is a member of the Association of German M&A Consultants (VMA), a non-profit alliance of prominent partner-led and independent M&A consulting firms (Frankfurt/Main).