The Franchise Scale Up Show with Guy Coffey

Why Doesn’t Revenue Equal Enterprise Value in Business with Holli Moeini


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Most founders think:

👉 “If I grow revenue, everything else will work itself out.”

That’s not how it works.

In this episode, I sat down with Holli Moeini (CFO & M&A advisor) to break down what actually drives enterprise value—and why chasing revenue alone can leave you stuck, stressed, and cash poor.

If you’re scaling right now, this is a conversation you need to hear.

Revenue vs. Value
Revenue looks good.
But it’s not what builds a valuable business.

Earnings do.

The Cash Flow Problem
A lot of brands are growing… but constantly tight on cash.

If you’re not around 10% net income, growth gets harder—not easier.

Where Profit Gets Lost
We talked about SG&A and overhead.

If that gets out of control:

  • Margins disappear
  • Flexibility disappears
  • Growth slows down

What Buyers Actually Care About
It’s not your top-line.

It’s:

  • Clean financials
  • Consistent EBITDA
  • Predictability

That’s what drives valuation.


Key Takeaways

  • Revenue ≠ value
  • Profit funds growth
  • Discipline drives scalability
  • Buyers look at earnings, not hype
  • Build it right early—or pay for it later


Timestamps

[00:00:00] – Why Most Founders Stay Cash Poor

[00:01:00] – Revenue vs Enterprise Value (Big Misconception)

[00:02:00] – Why Earnings Matter More Than Revenue

[00:03:30] – How Buyers Actually Value Your Business

[00:05:00] – The KPI Founders Obsess Over (And Why It’s Wrong)

[00:07:00] – The 10% Profit Rule for Sustainable Growth

[00:08:30] – How to Reduce SG&A Without Hurting Growth

[00:10:00] – The Hidden Cost of Scaling Too Fast

[00:12:00] – What Smart Buyers Look for Instantly

[00:14:30] – Why Deals Fall Apart in Due Diligence

[00:17:00] – Accounting Mistakes That Cost Millions

[00:18:30] – LOIs, Trust, and “Retrading” Explained

[00:20:00] – Red Flags That Kill Deals Fast

[00:23:00] – Why You NEED a CFO Before Selling

[00:25:00] – Earnouts: Where Sellers Get Burned

[00:27:00] – Working Capital: The Million-Dollar Mistake

[00:28:30] – The #1 Trait of Billion-Dollar Operators

[00:31:00] – Biggest Exit Mistake Founders Make

[00:32:00] – How Buyers Lose Value After Acquisition

[00:33:30] – The Right Way to Integrate a New Team

Ask yourself:

👉 Are we building something that looks big…
or something that’s actually valuable?

If you want help building a franchise that actually scales:

👉 Go to guycoffey.com and book a free strategy call

I work with founders who want to scale without losing control or burning cash.



Connect with Guy Coffey:
LinkedIn: www.linkedin.com/in/guycoffey
Website: www.guycoffey.com
Instagram: @guycoffey
YouTube:
@guycoffey

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The Franchise Scale Up Show with Guy CoffeyBy Guy Coffey