68. Increase Brand Valuation with Jason Somerville of GW Partners

https://youtu.be/T0OtpwWPfBg

Welcome to today's episode! Our host Eitan Koter set with Jason Somerville, co-founder of GW Partners, a boutique advisory firm that uniquely combines business consulting and M&A advisory services. Jason and his team work closely with founders, engaging one to two years before a strategic transaction, to optimize every aspect of their business from HR to marketing to ensure a successful outcome.

In this episode, I discuss with Jason the current state of the M&A market, and the challenges brands face with rising acquisition costs and the increased need for efficient marketing strategies. Jason emphasizes the importance of profitability, operational excellence, and strategic planning for direct-to-consumer brands.

We explore the critical role of founders and their teams in ensuring a brand's success and how GW Partners assists in building strong, sustainable businesses. Jason shares insights into the valuation trends, the importance of diversified go-to-market channels, and the rising interest in consumer brands from venture capital investors.

Join us for an enlightening conversation packed with valuable advice for founders looking to navigate the complexities of scaling and selling their businesses in today's competitive landscape.

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Guest: Jason Somerville, co-founder of GW Partners

LinkedIn: https://www.linkedin.com/in/jason-somerville-7273b71a/

GW Partners: https://www.gw.partners/

Takeaways:

• The e-commerce market is going through a transition period, with changes in consumer behavior and increased competition.
• Acquisition costs in digital advertising are rising, and brands need to approach marketing funnels differently.
• Valuations in the M&A market have decreased from their peak in 2021, but there are still opportunities for brands with good metrics and a diverse go-to-market strategy.
• The team is a crucial factor in the success of a brand, and buyers are placing more importance on the expertise and knowledge of the team.
• GW Partners is a boutique advisory firm that works with clients to prepare for strategic transactions, focusing on all aspects of the business to achieve the desired outcome.
• Founders need to shift from a tactical mindset to a strategic one when preparing for a strategic transaction.
• Managing ego is crucial during the transaction process, and having a steady presence can help guide founders.
• There is an increased focus on profitability, and leaders who can execute consistently are highly valued.
• Venture capital investment in consumer products is seeing an uptick, particularly in the health and beauty and food and beverage sectors.

Chapters:

00:00 Introduction and Overview

11:41 Valuations in the M&A Market: Opportunities and Challenges

28:19 The Importance of Operational Focus and Consistent Execution

39:52 Trends in Venture Capital Investment in Consumer Products