6:15 Is operational experience important to valuing a company? Does the appraiser need to understand the operations of the business? |
7:05 How important is predictability of the revenue and EBITDA if the buyer is purchasing the business for strategic purposes? |
7:45 What are you really buying when you are buying a business? |
8:25 How long does it take an appraiser to learn about a company before they value the business? What aspects of the business does the appraiser need to learn about? |
10:35 What are current EBITDA multiples for manufacturing companies? |
11:30 Is EBITDA the best metric for valuing a business? |
12:35 Why is EBITDA so common if it isn’t the most accurate metric? |
13:40 What are EBITDA multiples for publicly held companies? |
15:00 What cash flow metrics do private equity firms use? |
15:25 What is adjusted EBITDA? |
16:20 Should discounted cash flow be used to value a business? |
18:05 What should you know about working capital when selling or valuing a company? |
19:55 Why is working capital important to consider when valuing a company? |
20:20 Why is working capital usually included in the price in an M&A transaction? |
20:40 What are the most common errors when calculating working capital? |
21:55 Do most buyers use the same method for calculating working capital? |
24:45 What is the difference between GAAP and Super-GAAP? |
26:35 How big can a post-closing working capital dispute be? |
29:00 How do you prevent post-closing working capital disputes? |
29:35 Should the seller involve their CPA in negotiating the working capital language in the purchase agreement? |
30:20 How long is a typical working capital clause in a purchase agreement? |
31:45 Is working capital defined in the LOI? |
32:05 How does a working capital true-up work? |
32:35 How easy is it for a buyer to manipulate working capital targets to their advantage? |
35:25 What is the number one thing you can do to increase the value of your business? |
39:45 How should you prepare your business for sale? Is there anything different you should do from running your company on a daily basis? |
42:05 What is a quality of earnings (QOE) analysis? |
43:35 What are the most common factors that affect the value of a business? |
45:50 What is the essence of business valuation from a buyer’s point of view? |
47:05 Is the EBITDA multiple essentially a judgement regarding the risk inherent in the business? |
48:25 What is the relationship between the risk and return? |
49:05 How can the seller maximize the value of a business by minimizing risks? |
50:40 How can the seller maximize the EBITDA multiple? |
52:50 How common are multiples exceeding 5.0 in the middle market? |
53:35 Why do businesses in certain industries sell at higher multiples? |