What is the Value of Your Business?

hosted by: David Mariano, Director and head

of the firm’s Buy-Side advisory practice

What is the Value of Your Business?

If you ever want to sell, you must understand how your business will be valued. And even if selling isn’t in your future, understanding valuation will help you build a more profitable and sustainable business.

In this episode, Mark Filippell walks us through the major elements of valuation in the context of a sale, including how buyers might determine the value of your business.

Key questions in this episode:

* How do investment bankers determine the value of a business?

* Is buyer identification and outlining a company’s benefits the best way to unlock the intangible value of a business?

* How well do owners understand their true differentiation versus their competitors?

* Are there common elements of valuable businesses?

* What are the common elements that sink the value in a business?

* Can business value ever be unlocked by a buyer?

Key points in this episode:

* What the key starting points are in valuing a business.

* The raw horsepower of EBITDA.

* Specific things that add to or detract from value, including financial systems, differentiation, quality, leadership, etc.

* How the market position of your business effects its value.

* “What ‘value’ means to a buyer” (at 9:18).

* The two kinds of sellers.

* What dishonesty can do to the value of your business (at 14:29).

* A final word on diversification.

Resources mentioned in this podcast

* Click here for access to training and templates

* Mergers and Acquisitions Playbook, lessons from the middle-market trenches, by Mark A. Filippell

* Western Reserve Valuation Services

Listen to Fully Invested below: