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In this episode of The Exit: Andrew Dickow, Managing Director at Greenwich Capital Group, shares insights from both the buy and sell sides of mergers and acquisitions.

Andrew discusses valuation methodologies, focusing on the importance of clean financials and understanding market multiples. Specifically in the food and beverage industry, he introduces his "40/20 rule" as performance benchmarks to receive an attractive valuation: 40% gross margins and 20% EBITDA margins.

He explains leveraged buyouts, highlighting their benefits to both parties involved in the deal while cautioning about the risks of over-leveraging.

He also advises entrepreneurs to be wary of unsolicited offers from private equity firms and emphasizes the importance of hiring proper advisors to run a competitive process.

Regarding timing, Andrew notes a recent boom in M&A activity due to anticipated lower interest rates and potential tax implications.

For more details and insights, listen to the latest episode of The Exit.

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Andrew Dickow is a Managing Director at Greenwich Capital Group and Townsend Street Capital with over 18 years of experience in both mergers and acquisitions and business

operations. Andrew leads the Food and Beverage/Consumer practice for GCG and TSC and has significant experience working with consumer-packaged goods, distribution, contract manufacturing, and ingredient companies. Andrew focuses on both the sell-side and buy-side and has advised numerous clients through recapitalizations, leveraged buyouts, business valuations, and financial analyses.

Website: https://greenwichgp.com/

LinkedIn: https://www.linkedin.com/in/andrewdickow/

Check Out Flippa’s Data Insights Tool: https://flippa.com/data-insights

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The Exit—Presented By Flippa: A 30-minute podcast featuring expert entrepreneurs who have been there and done it. The Exit talks to operators who have bought and sold a business. You’ll learn how they did it, why they did it, and get exposure to the world of exits, a world occupied by a small few, but accessible to many. To listen to the podcast or get daily listing updates, click on flippa.com/the-exit-podcast/