Getting the Most Value for Your Business

Jeff Thomas, CEO of Archetype Wealth Management, and Matt Gilbert, Principal of GaP Business Advisors, share how any business can be at the high value range.

  • Is it only the bigger companies that get the big valuations? Can some of the smaller companies also get some of those decent-sized deals? 

WHAT DRIVES A GREAT SALE?

  • Positioning the business pre-sale to be transparent, to show the return on investment to the buyer and to lay this out in a way that the buyer can see the future trajectory of taking the business to the next level.  When a buyer feels reduced risk, they are willing to pay up for that. 
  • Plan ahead and have a great team to help you execute on strategy.

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[00:00:05] JEFF: Jeff Thomas here with Archetype Wealth Partners, I have a special guest today, Matt Gilbert with GaP Business Advisors. Matt and I were having a conversation recently about some different issues that are happening right now in the M&A market. And some of his answers surprised me. And I learned something. So we thought we'd shoot this video to answer some of those questions. 


One of the discussions we had was about valuations in this market. And I think there's a perception out there that only the bigger companies, companies with a four or five million in cash flow EBITDA, those are the only ones getting the big valuations. Can some of those smaller companies also get decent sized deals?

 

[00:00:45] MATT: Yeah, there's that's just a complete misnomer, right? That's TV and media, you know, playing to their favorite. But every business is in a category. Right. And in that category, you have great sales and you have lousy sales and everything in between. And really, what drives a great sale is positioning the business presale to be very transparent, to show the return on investment to the buyer, to show that there's some meat on the bone and some trajectory left for that buyer to take this business to the next level and to have the the authenticity to lay those things out in a way that a buyer can see them. When a buyer has and feels reduced risk and a transaction they're willing to pay up for that. So if you put together a plan and a strategy, get a great team together, you guys go execute that strategy. You're going to find that any business can be at the high end of the value range. And conversely, if you don't do all that stuff, you may find yourself at the low end of the value range when you come to sell.

 

[00:01:53] JEFF & MATT: So once again, plan ahead, plan ahead and get a great team. There's a drumbeat ahead and have a great team.


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