49 min listen
Valuation Principles and Working with Earnouts
FromM&A Science
ratings:
Length:
45 minutes
Released:
May 1, 2023
Format:
Podcast episode
Description
PJ Patel, Co-CEO & Senior Managing Director at Valuation Research Corporation (VRC) This episode is sponsored by the M&A Science Academy, DealRoom, and FirmRoom. To join our growing online community of M&A practitioners, visit https://www.mascience.com/academy. Don’t forget to use code “podcast” at checkout. Ready to take your M&A to the next level with software made to manage each stage of the deal process? See how DealRoom can facilitate your next deal at https://www.dealroom.net FirmRoom provides 80% cost savings over VDRs that bill by page and delivers a far better user experience to boot. Sign up in under 2 minutes by going to https://www.firmroom.com EPISODE TIMESTAMPS: 00:00 Intro 08:37 Market Trends 11:15 Maximizing your company’s valuation 12:24 Growth vs Cash flow 13:35 The effect of Storytelling on valuations 14:27 Investor’s Influence on Valuation 17:14 Things to avoid as an operator 19:14 Common Mistakes in Valuation 20:53 Impairment 23:42 Implications of impairment 25:49 Purchase price allocation 29:05 Earnout structures 32:34 Length of earnouts 32:51 Computing for Earnouts 38:33 Negotiating Earnouts 41:06 Craziest thing in M&A
Released:
May 1, 2023
Format:
Podcast episode
Titles in the series (100)
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