Valuation Principles and Working with Earnouts

PJ Patel, Co-CEO & Senior Managing Director at Valuation Research Corporation (VRC)

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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