From Corporate Buyer to Entrepreneur: Lessons in Creating Value for an Exit

About the Episode

“If you build it, they will come” is an expression that applies to starting a company as well as a baseball field. Thinking about what buyers want and avoiding the pressure to sell in a specific timeframe can help you increase your company’s value when the time comes to sell. With 25 years in corporate M&A, Guillaume Thomas helps sellers understand what the M&A process looks like for buyers. He also shares how he has used these same lessons to start his own company, which has grown out of his four-generation family business. 

“If you build something that is valuable to you and that has sustainability, it will have value to someone else.”

Guillaume Thomas

What You’ll Learn

  • Valuation: The importance of realistic valuations, the impact they have on negotiations, and why it is critical to understand the buyer’s motivations.
  • Multiples: What the drivers are behind multiples and how they change. 
  • Due Diligence: The critical role of financial transparency and organization throughout the due diligence process to show professionalism and build trust with the buyer.
  • Entrepreneurship: Insights into the emotional challenges and rewards of transitioning from corporate executive to entrepreneur.

Topics Covered

What is the number one mistake owners make when selling their business? [3:03]
How can wanting to sell versus having to sell impact negotiations? [9:01]
How can a seller show growth in their company and then potential future growth? [12:05]
How important is brand loyalty? [19:57] 
Thoughts on M&A as an art versus a science versus common sense [24:24] 
What is the best way to think about exit planning? [30:24]
What are the most common problems a buyer sees in the due diligence process? [40:01]
How important are sales and marketing in the consumer world? [45:15]
Is there a difference between building a company to sell and just building a good company that’s valuable? [53:30] 

“If you’re not desperate to sell, there’s a good chance that you’re going to sell in a better condition and in a better situation than if you are desperate to sell.”

Guillaume Thomas

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Meet Our Guest

Guillaume Thomas

Guillaume Thomas

Founder and CEO, Martingale Cognac | New York, USA

Guillaume Thomas blends a corporate background with entrepreneurship as the founder and CEO of Martingale Cognacs, launching the 4th generation family business of crafting cognacs into their own private label. Prior to starting this business, Guillaume spent 25 years in the corporate world, working with PE firms and corporations, focusing on strategic analysis of target companies and their fit with large corporate strategies. He also spent 18 of those years as part of the M&A team for Pernod Ricard in Europe and the United States, working on transactions ranging from multi-billion dollar deals to small bolt-on acquisitions. 

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