logo
episode-header-image
May 2023
44m 45s

Valuation Principles and Working with Ea...

KISON PATEL
About this episode

PJ Patel, Co-CEO & Senior Managing Director at Valuation Research Corporation (VRC)

This episode is sponsored by the M&A Science Academy, DealRoom, and FirmRoom.

To join our growing online community of M&A practitioners, visit https://www.mascience.com/academy. Don’t forget to use code “podcast” at checkout.

Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://www.dealroom.net

FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience to boot. Sign up in under 2 minutes by going to https://www.firmroom.com

EPISODE TIMESTAMPS:

00:00 Intro

08:37 Market Trends

11:15 Maximizing your company’s valuation

12:24 Growth vs Cash flow

13:35 The effect of Storytelling on valuations

14:27 Investor’s Influence on Valuation

17:14 Things to avoid as an operator

19:14 Common Mistakes in Valuation

20:53 Impairment

23:42 Implications of impairment

25:49 Purchase price allocation

29:05 Earnout structures

32:34 Length of earnouts

32:51 Computing for Earnouts

38:33 Negotiating Earnouts

41:06 Craziest thing in M&A

 

Up next
Aug 18
Founder Exit Strategy: Xavier Gury on M&A Deal Terms vs Valuation
Xavier Gury, Founding Partner at Wind Xavier Gury, founding partner at Wind venture capital firm, brings a unique triple perspective to M&A: serial entrepreneur, acquisition target, and now investor. In this episode, Xavier unpacks the critical lessons from his three successful e ... Show More
1h 6m
Aug 11
M&A Execution: Strategy from Skadden Expert Arash Attar
Arash Attar-Rezvani - M&A Partner, Skadden, Arps, Slate, Meagher & Flom LLP In part two of this masterclass conversation, Arash Attar-Rezvani gets into the execution challenges that separate successful M&A practitioners from the rest. From deconstructing French labor consultation ... Show More
38m 40s
Aug 4
Cross-Border M&A Strategy: Navigating Complex International Deals with Arash Attar-Rezvani
Arash Attar-Rezvani - M&A Partner, Skadden, Arps, Slate, Meagher & Flom LLP Arash Attar-Rezvani, M&A Partner at Skadden based in Paris, brings over two decades of cross-border M&A strategy experience to this in-depth conversation. From billion-dollar telecom deals across Latin Am ... Show More
42m 25s
Recommended Episodes
Feb 2024
Unilever's Secret to Building an Equitable & Inclusive Workplace
In this episode of the HR Leaders Podcast, Evelyn Maria Espinal, Global Head of Equity, Diversity & Inclusion at Unilever, discusses pioneering a comprehensive strategy integrating ED&I across business functions to position inclusion as a key driver of performance. 👉 Subscribe t ... Show More
36m 50s
Mar 2023
438 - Discover What It Means to Think Like a CEO
Darin Stubbs is the executive vice president at Symmetry Financial Group. If you’re an entrepreneur who’s just starting out, has hit a lull, or can’t get momentum—or if you simply want more of what being your own boss promises—then we guarantee that Darin’s advice and insight wil ... Show More
28m 18s
Jan 2024
Madhavan Ramanujam - How to Price Products - [Invest Like the Best, REPLAY]
My guest today is Madhavan Ramanujam. Madhavan quite literally wrote the book on how to price products. It’s called “Monetizing Innovations” and his concepts have been used by companies across the world like Porsche, Uber, LinkedIn, and SuperHuman. Our conversation is a mastercla ... Show More
56m 35s
Apr 2024
A Spin-off Story
In the podcast, REWORK host Kimberly Rhodes talks with 37signals co-founders, Jason Fried and David Heinemeier Hansson, about their journey spinning off products. They stress the value of keeping contracts simple and how once the handover is done, it's best to take a hands-o ... Show More
26m 9s
Jun 2024
3 Things You Need To Outperform 99% Of Entrepreneurs
Episode 599: Sam Parr ( https://twitter.com/theSamParr ) and Shaan Puri ( https://twitter.com/ShaanVP ) talk about the best traits of a startup founder and lessons from how Dana White, Elon Musk, and Emmett Shear cut through the bullshit. —Show Notes:(0:00) Top traits founders sh ... Show More
1h 10m
Aug 2023
Opening The Books: Mixed By Nasrin
Nasrin Jafari is the founder, designer and CEO of Mixed By Nasrin, a Brooklyn-based fashion company that's recently hit a 7-figure run rate and continues to grow rapidly–and profitably. In my first ever "Opening The Books" episode, Nasrin and I essentially recorded a coaching ... Show More
1h 56m
Jan 2024
Trane Technologies: Hot and Cold - [Business Breakdowns, EP.144]
This is Matt Reustle. Today we venture into the world of HVAC to break down Trane Technologies. Now, it's not often that I come across an industrial company with a $50 billion market cap that I just hadn't heard of. So when our guest today, Brett Larson, investor at NZS Capital, ... Show More
46m 53s
Jun 2024
Your Business Is NOT What You Think It is | Ep 724
“People don’t know the actual business they’re in.” Today, Alex (@AlexHormozi) dives into the core elements driving business success, emphasizing the significance of sales, marketing, brand, media, and distribution. Using real-world case studies, he illustrates strategic pivots a ... Show More
42m 4s
Feb 2024
Ultra-Niche Positioning: How to Find Success By Going SUPER Narrow
I’m so f*cking happy to announce that ​my book, Stand The F*ck Out, is officially available for PURCHASE​! To buy the book—and more!—DIRECTLY from us and support our small business, go to: https://book.stfo.ioFree Shipping Worldwide • Ripped Apart by 70+ Marketers • Money-Back Gu ... Show More
57m 59s