Is valuing your business simply a numbers game? If not, how do subjective factors impact the value of your business? Jacob Orosz and Joe Bergin discuss the complexities of business valuation, which extends beyond simple EBITDA multiples. They discuss the impact of subjective factors, such as clean financials, a solid leadership team, and diversified customer base on the value of your company. They also look at a few key actions you can take to dramatically improve your business’s value.

View the complete show notes for this episode.

Want To Learn More? 

• Should I Use SDE or EBITDA to Value My Business for Sale?
• EBITDA | Definition, Formula & Example – A Complete Guide
• Quality of Earnings in M&A – The Ultimate Guide
• Earnouts When Selling or Buying a Business | Complete Guide

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue

If you have any topic or guest suggestions please email them to [email protected]

Luke Smith, CEO and founder of Croud, a digital marketing agency with five global offices, discusses the unique nature of M&A deals. He shares Croud’s M&A journey, detailing five acquisitions ranging from small data businesses to larger digital marketing firms. Luke highlights the importance of flexible deal structures and maintaining trust with founders. He advises sellers to value their businesses and time their sales strategically and stresses the significance of cultural fit in successful acquisitions.

View the complete show notes for this episode.

Want To Learn More? 

• M&A Reps & Warranties | A Complete Guide
• Indemnification in Purchase Agreements | M&A Basics
• M&A Negotiating Tactic #1 – Honesty

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue

If you have any topic or guest suggestions please email them to [email protected].

Show Summary: The purchase agreement – getting it right from the beginning with the LOI helps a smooth closing. Gerry Williams, an M&A attorney, outlines a purchase agreement’s key components and four main sections: the preliminary section (purchase price, working capital, earnouts, post-closing adjustments), reps and warranties, covenants, and indemnification. He emphasizes the importance of understanding the implications of deal structure (asset vs. stock) and the role of reps and warranty insurance in mitigating seller liability. 

View the complete show notes for this episode.

Want To Learn More? 

•  Anatomy of an M&A Purchase Agreement | Complete Guide
• M&A Reps & Warranties | A Complete Guide
• Net Working Capital (NWC) for M&A – A Complete Guide
• M&A Basics | Asset vs. Stock Sale
• Earnouts When Selling or Buying a Business | Complete Guide
• Indemnification in Purchase Agreements | M&A Basics

• The Role of Your Accountant in the Sale of Your Business
• How an M&A Attorney Can Help Sell Your Business
• Transferring Risk and Achieving a Smooth Exit: The Role of Reps and Warranties Insurance in M&A

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue

If you have any topic or guest suggestions please email them to [email protected].

Show Summary: Investment banker Richard Luftig discusses financing options for obtaining a middle-market company. He delves into the challenges and strategies for raising capital through either equity or debt capital for middle-market companies. Richard explores why pre-revenue companies struggle to attract capital while established firms with sustainable revenue fare better. He discusses private credit funds, equity investment, and what constitutes a successful debt-raising strategy. 

View the complete show notes for this episode.

Want To Learn More? 

• The M&A Purchase Agreement | An Overview
• Small Business Acquisition Financing
• 18 Differences Between Valuing Public and Private Businesses

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue

If you have any topic or guest suggestions please email them to [email protected].

Should I sell my business to a competitor? How do I know if they’re sincere, or trying to steal my information? Jonathan Baker, an M&A advisor specializing in marketing firms, discusses the nuances of selling your business to a competitor. Jonathan highlights the risks of sharing sensitive information with competitors and how to tell if their interest is sincere. 

View the complete show notes for this episode.

 Want To Learn More? 

•  Punctuation
• M&A Guide | Selling Your Business to a Competitor
• How To Maintain Confidentiality When Selling Your Business

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue

 If you have any topic or guest suggestions please email them to [email protected].

What’s your role in the transition process when selling your business? Expert Joan Helmer discusses the transition period from the seller’s perspective – how to prepare, expectations, what can go wrong, and its phases, from the LOI to the closing. He emphasizes that the pre-closing phase involves aligning strategic elements, departmental roles, and operational gaps, while the post-closing phase focuses on integrating systems and roles, often requiring a 100-day plan. He also highlights the importance of alignment on expectations, having a clear plan, and the seller’s role in due diligence.

View the complete show notes for this episode.

Want To Learn More? 

• The M&A Training & Transition Period
• M&A Negotiating Tactic #1 – Honesty

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue

If you have any topic or guest suggestions please email them to [email protected].

Why can selling a business be such an emotional process, and what can you do to make it less stressful? Nate Pratt, a financial services wealth advisor, discusses the emotional journey of selling a business. He highlights the importance of cultural alignment, focusing on retaining the top talent in a company, and the long-term impact of an acquisition on the business’s teams and clients. Nate notes that successful sellers start early, educate themselves, and share their passion and enthusiasm with potential buyers. Nate also stresses the need to be honest about the motivation to sell and to prepare emotionally.

View the complete show notes for this episode.

Want To Learn More? 

• Informing & Retaining Employees When Selling a Business
• Why is Selling a Business so Hard?
• M&A Negotiating Tactic #1 – Honesty

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue

If you have any topic or guest suggestions please email them to [email protected].

Mina Haque, CEO of Tony Roma’s, spent almost nine months on legal due diligence, learning the ins and outs of the corporation, and building strong relationships with franchise owners. This led to her being named CEO of the company, focused on continuing the stabilization and growth of this global brand. She highlights the challenges of maintaining brand consistency and shares her insights through the acquisition, emphasizing the importance of staffing, integration, and franchisee relationships.

View the complete show notes for this episode.

Want To Learn More? 

• The Role of a Franchisor When Selling a Franchise
• M&A Due Diligence | Checklist & Overview

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue

If you have any topic or guest suggestions please email them to [email protected].

VC investor Sandeep Patil discusses the nuances of selling a company to a VC-backed business. VC acquisitions often prioritize growth potential and talent quality over immediate returns. Sandeep emphasizes the importance of understanding the acquirer’s objectives, the integration strategy, and the long-term growth prospects. He notes that VC-backed companies typically prefer equity swaps due to limited cash reserves and advises sellers to perform thorough due diligence on the acquirer’s growth potential and exit strategy.

View the complete show notes for this episode.

Want To Learn More?

• A Guide to Valuing Tech, Software & Online Businesses
• Business Valuation Methods in a Nutshell

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue
• Download Food and Beverage M&A: An Insider’s Guide to Selling a Food or Beverage Manufacturing, Distribution, or Grocery Business.

If you have any topic or guest suggestions please email them to [email protected].

Blake Hutchinson, CEO of Flippa.com, discusses the evolution and challenges of the online business marketplace. The Flippa platform facilitates the sale of online businesses in five core business models: online publishing, e-commerce, SaaS, iOS/Android apps, and YouTube channels, with 425,000 AI matches weekly. Blake highlights the importance of supply acquisition, the growing interest from institutional investors, and the demand for quality assets focusing on traditional, recession-proof industries.

View the complete show notes for this episode.

Want To Learn More? 

• Tech & Software M&A Dynamics
• Top 5 M&A Value Drivers for Tech & Software Companies
• A Guide to Valuing Tech, Software & Online Businesses

Additional Resources:

• Selling your business? Schedule a free consultation today.
• Download The Art of The Exit: The Complete Guide to Selling Your Business
• Download Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue
  • Download Food and Beverage M&A: An Insider’s Guide to Selling a Food or Beverage Manufacturing, Distribution, or Grocery Business.

If you have any topic or guest suggestions please email them to [email protected].