4: Valuation

In this episode of M&A University, Jim Evanger provides an in-depth exploration of business valuation for middle market companies. He breaks down key concepts like EBITDA, valuation multiples, and the factors that influence a company’s worth. Listeners will learn about the most common valuation methods, how to normalize financial statements, and strategies to maximize business value before a potential sale. Whether you’re a business owner considering selling or simply want to understand how companies are valued, this episode offers crucial insights into the art and science of business valuation.

Additoinal Information

• Topics Covered
  • Valuation Methods for Middle Market Businesses [0:02]
  • Understanding EBITDA and Its Calculation [2:20]
  • Normalizing Financial Statements and Add-Backs [4:42]
  • Good and Bad Add-Backs in Valuation [7:28]
  • Factors Affecting Business Valuation [18:34]
  • Transaction Structures and Their Impact on Value [24:22]
  • The Due Diligence Process and Maximizing Value [26:52]
  • The Importance of Annual Valuation Check-Ups [31:06]
• Helpful Resources
  • Business Valuation & Return on Investment (ROI)
  • Business Valuation Standards of Value & Fair Market Value
  • M&A Talk Episode: M&A Valuations in the Real World
  • M&A Talk Episode: How Public Company Valuations Can Affect the Value of Your Business