The current earnings before interest and taxes of a firm that is run inefficiently will be lower than if it were run efficiently. Therefore, a potential purchaser would be willing to pay more than the current market value if they believe that they can correct the inefficiencies.
The current market value of a firm that is run inefficiently will be lower than if it were run efficiently. Therefore, a potential purchaser would be willing to pay more than the current market value if they believe that they can correct the inefficiencies.
When determining the acquisition value of anything, the maximum amount to pay is the present value of the expected future cash flows from whatever is being acquired. When determining these future cash flows, the potential purchaser will factor in any increases in sales that will result from the firm being run more efficiently in the future.
The current net profits of a firm that is run inefficiently will be lower than if it were run efficiently. Therefore, a potential purchaser would be willing to pay more than the current market value if they believe that they can correct the inefficiencies.
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