Private Company Valuation Mistakes & Case Studies

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FinanceKid
4.3 هزار بار بازدید - پارسال - How do you value a
How do you value a private company correctly? What are common valuation mistakes that buyers/sellers make when attempting to value a private company? How does a business' valuation change based on the purchase terms available to a buyer? In today's part 1 video, we cover three valuation mistakes I commonly see in the small business/lower mid-market M&A transactions. There is a part 2 video in which we cover four more valuation mistakes and go through more real life case studies focused on balance sheet related valuation mistakes.

[3:05] - Private Company Valuation Quick Recap
[4:34] - Overview of Purchase Terms and their influence on valuation (cash, Vendor note, earnout, rolled equity, buyer equity, holdbacks)
[8:04] - Mistake #1: Pricing off of recent earnings growth without considering long-term sustainability
[12:19] - Real Life Case Study #1
[18:02] - Mistake #2: Valuation based on future projections – the “hockey-stick” syndrome
[22:12] - Real Life Case Study #2  
[26:45] - Mistake #3: Excluding the invisible costs of valuation (CAPEX, tax losses, working capital costs and market level adjustments to staff and company pricing)
[35:40] - Real Life Case Study #3 & #4

The case studies in this video are from real life past M&A transactions completed by Roblee Capital with some changes to the figures to ensure the confidentiality of our clients.

Click The Link Below To Purchase the Letter of Intent (LOI) Template For Asset-Based Acquisitions on the FinanceKid website. Thank you for your support!

https://www.financekid.ca/products/le...

If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon! If you want to reach out, contact me at;

[email protected]

If you are looking to sell your business and would like to learn more about Roblee Capital, please reach out to me for an introductory call. You can contact me through email or through my LinkedIn at;

LinkedIn: robert-bezede-20ab8a6a

Roblee Capital is a Toronto-based M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buy-side M&A services. We work with Canadian-based business owners looking to sell their lower mid-market business. If you are a Canadian business owner looking to sell or buy, please reach out so we can connect at the link below:

https://www.robleecapital.ca/
پارسال در تاریخ 1401/11/18 منتشر شده است.
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