A valuation number becomes useful only when its purpose is clear. Rajeev Khandelwal’s documented experience across M&A, structured finance and operating businesses offers context for that principle. The same asset can contribute significant value inside a functioning enterprise and realise a different amount if sold separately. Financing decisions should recognise the assumptions behind each figure rather than treat valuation as one universal answer.
Start with the intended use
A buyer evaluating an acquisition may focus on future cash generation, while a lender considering collateral may examine recoverable proceeds. An owner planning replacement needs another perspective again. The valuation should match the question being asked. This prevents a financing presentation from using an attractive figure produced for one purpose as if it automatically establishes the protection or purchasing economics required for a different commercial decision.
Consider the operating system
A specialised plant can depend on staff, customer contracts, utilities and permits to produce its expected cash. Removing the equipment from that system may reduce value substantially. The analysis should identify which elements are included in the valuation and whether they remain available in a sale. A strong operating business and a collection of physical assets can have very different economic characteristics even when their accounting records list the same machinery.
Make time visible
An orderly sale allows more opportunity to find suitable buyers than an urgent disposal. Market conditions and transaction costs also affect proceeds. The financing discussion should therefore consider the expected timeframe rather than assume instant liquidity. A valuation that appears comfortably above the loan amount may provide less protection after allowing for delays, preservation expenses and the practical discounts required to complete a sale under financial pressure.
Use value with context
Credit Connect’s M&A and financing offerings connect this subject to Rajeev’s professional ecosystem. A useful capital conversation compares values on a consistent basis and explains their assumptions. That approach supports better negotiation because participants understand where their differences originate. The objective is not to choose the highest available number, but to use a valuation that answers the commercial question and remains credible under the circumstances relevant to the transaction.
