The News
Recent M&A data show a surge in deal value but flat deal volume, suggesting a split market where valuations matter more than ever.
CFOs are watching discretionary deal activity carefully as capital markets recalibrate risk and pricing expectations ahead of 2026 deals.
At the same time, analysts highlight that capital market valuations continue to shape CFO strategies, influencing not only deal timing but also how finance leaders prepare their companies to be investor-ready.
In retail, the collapse of a nearly $950M J.C. Penney deal this week underscores how valuation misalignment and structural complexity remain execution risks for buyers and sellers alike. (The Sun)
What CFOs Should Care About
Investors are not just buying numbers, but confidence in the story behind those numbers.
In other words, CFOs need to think beyond revenue and standard financials to understand why certain companies command stronger valuations and deal certainty.
This reality is showing up right now in:
how deals are priced and structured
which deals close smoothly
and which fall apart under scrutiny
Trend Insight
Revenue still matters, but valuation is increasingly driven by risk perception and structural readiness. Look at what’s happening in the broader market:
Higher deal values don’t mean easier exits, they mean sharper valuation discipline.
Even credible deals can collapse if investors lack confidence in execution, governance, or strategic clarity.
This signals a shift CFOs should heed:
Valuation is a function of confidence about future value rather than just a reflection of performance
4️⃣ Self-Assessment CFO Pulse Check
Ask yourself as you read this morning:
If an investor looked at your company’s structure today, would they trust it?
Do your financial systems, operational narratives, and growth logic give them confidence in future value?
Or are you simply riding revenue momentum?
These are the questions that increasingly determine real enterprise value in the current market.
5️⃣ Surprise Coming soon for CFOs!
The modern valuation mindset goes beyond quarterly revenue reports.
It blends financial performance with narrative clarity and structural readiness.
A topic we’ll explore more deeply in coming editions.
Stay tuned, and if valuation is top of mind, you’re not alone.