Summary

In this episode of the In/organic Podcat, co-hosts Christian Hassold and Ayelet Shipley welcome guest Matt Bodnar, founder and managing partner at Eidolon Capital. Matt is a business owner and investor with substantial experience using M&A as a lever to acquire and grow businesses. In this episode, Matt discusses how he has leveraged his intellectual interest in valuations and deal structuring to execute creative and accretive deals. Further, Matt discusses the importance of understanding earnings and multiples in business valuation, the impact of size on valuation, and the challenges of customer concentration. Additionally, he provides strategies for sellers to maximize their exit value, emphasizing the need for thoughtful analysis and potential acquisitions to enhance business value.

Takeaways

• Valuation can be simplified to earnings and multiples.
• Size significantly impacts business valuation multiples.
• Customer concentration can negatively affect valuation.
• Sellers should consider adding businesses to increase value.
• Earnings adjustments can significantly influence business valuation.
• Understanding market perceptions is crucial for sellers.
• Agencies offer unique opportunities for cross-selling and growth.

Chapters

00:00 Coffee Preferences and Brewing Techniques

02:54 Restaurant Business Insights and Challenges

05:42 Valuation Philosophy and Business Insights

14:44 Valuation Fundamentals: Understanding Multiples

22:12 Earnings and Adjustments: The Art of Valuation

34:20 The Size Premium: Why Bigger is Better

38:12 Customer Concentration: Risks and Strategies

41:53 Maximizing Exit Value: Key Strategies for Sellers

Pepperdine Capital Markets Report discussed on the podcast

https://digitalcommons.pepperdine.edu/gsbm_pcm_pcmr/

Connect with Christian and Ayelet

Ayelet’s LinkedIn: https://www.linkedin.com/in/ayelet-shipley-b16330149/

Christian's LinkedIn: https://www.linkedin.com/in/hassold/

Web: https://www.inorganicpodcast.co

In/organic on YouTube: https://www.youtube.com/@InorganicPodcast/featured

Connect with guest Matt Bodnar

https://www.linkedin.com/in/mattbodnar/

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