M&A Talk: #1 Podcast on Selling a Business

For New Sellers: From Corporate Buyer to Entrepreneur -- Lessons in Creating Value for an Exit

Jul 17, 2024

Guillaume Thomas, with 25 years in corporate M&A, shares valuable insights on valuations, multiples, due diligence, and entrepreneurship. He discusses the importance of realistic valuations, financial transparency, and emotional challenges transitioning from corporate to entrepreneur. Topics include building brand resonance, maximizing value through strategic buyers, and the significance of sales and marketing in the consumer industry.

59:10

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Episode guests

Guillaume Thomas

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Episode notes

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Quick takeaways

Realistic valuations impact negotiations and understanding buyer motivations is crucial for increasing company value before sale.

Financial transparency and organization during due diligence build trust with buyers and show professionalism, key for successful selling.

Creating a strategic exit plan aligned with potential buyer interests enhances company value and ensures successful exit.

Deep dives

Building a Company with Valuable Branding

Focusing on creating a brand with potential growth is crucial for attracting strategic buyers in the future. The valuation of a brand, especially in the consumer industry, heavily relies on its growth prospects and consumer recognition. Understanding how strategic buyers assess a brand's value and recognizing the significance of growth in brand valuation are vital steps in building a successful company.

Intro

2min

Building a Company to Sell: Valuation, Negotiations, and Growth Strategies

12min

Strategic Revenue Requirements and Brand Value in Consumer Products Companies

2min

Building Brand Resonance for Business Acquisitions

11min

Building a Valuable and Sustainable Business

4min

Maximizing Value Through Strategic Buyers

11min

Strategic Buyer Completion Rates and Importance of Sales and Marketing in Consumer Industry

3min

Building a Sustainable Business and Transitioning to Entrepreneurship

13min

View the complete show notes for this episode.

“If you build it, they will come” is an expression that applies to starting a company as well as a baseball field. Thinking about what buyers want and avoiding the pressure to sell in a specific timeframe can help you increase your company’s value when the time comes to sell. With 25 years in corporate M&A, Guillaume Thomas helps sellers understand what the M&A process looks like for buyers. He also shares how he has used these same lessons to start his own company, which has grown out of his four-generation family business.

What You’ll Learn

Valuation: The importance of realistic valuations, the impact they have on negotiations, and why it is critical to understand the buyer’s motivations.
Multiples: What the drivers are behind multiples and how they change.
Due Diligence: The critical role of financial transparency and organization throughout the due diligence process to show professionalism and build trust with the buyer.
Entrepreneurship: Insights into the emotional challenges and rewards of transitioning from corporate executive to entrepreneur.

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