You look at similar past deals which have gone ahead or fallen through. You sound out some large shareholders, see what they might accept. You run your own mo

You look at similar past deals which have gone ahead or fallen through. You sound out some large shareholders, see what they might accept. You run your own modelling - what you think it's worth, what it will cost to finance the deal. That gives you a cap on what to offer. Then you use your judgement and make a bid. After you make your bid, you will get more feedback and can raise the price if necessary.