Do you have a realistic valuation of your company? A lot of business owners never actually know what their company is worth until they go to sell their business. It is important to know this earlier to be able to figure out what exit option makes the most sense.
John Carvalho, president and founder of the middle market M&A advisory firm, Stone Oak Capital, as well as co-founder of Divestopedia, talks about the importance of starting to plan for your exit early so you can have time to get the valuation to where it needs to be. If a change in objectives or change in business is needed, you can back into that if not selling for another few years. The more time you have, the more able you will be to achieve the goals you want when selling your company.
In today’s episode you’ll learn:
- How to structure your company sale
- Who to find as a likely buyer
- How to architect the financing behind the deal
- How to reverse back into what you want out of your exit
- Making a healthier business before sale
In today’s episode, you will also get John’s expert advice on business valuations, exit options, how deals are structured, financing options, and we have a discussion on return on equity. With 15+ years of experience in the M&A space, John also tells us the three most important variables in value creation, one being to make sure you have a great M&A advisor.
“A great M&A advisor increases value from that timeframe when you start to market the business to the timeframe you close the deal,” says John.
My purpose for starting this podcast was to bring my listeners everything I wish I would have known when we sold our company. I am very grateful this podcast will be an added resource on John’s online publication site, Divestopedia, to further this mission. Co-founded with the founder of Investopedia, Cory Janssen, Divestopedia is an online resource for entrepreneurs who want to sell their business for the best price and terms.
Thanks to John for sharing all of his M&A knowledge with us and I hope you all like today’s episode! Please leave me any comments you have in the section below and let me know what you enjoyed, didn’t enjoy, or want to know more about.
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Contact Information and Bio for John:
Stone Oak Capital Website: http://stoneoakcapital.com/
Divestopedia Twitter: https://twitter.com/divestopedia
Divestopedia Facebook: https://www.facebook.com/Divestopedia/
John is president and founder of Stone Oak Capital Inc., an M&A advisory firm as well as co-founder of the online publication Divestopedia. For over 15 years, John has served his clients on numerous financial advisory assignments and M&A transactions in various industries. John’s established professional network and his astute understanding of business operations on all levels, contribute to his demonstrated ability to create value in mid-market transactions.
John holds the Corporate Finance designation, is a Chartered Business Valuator and a Chartered Accountant. He is also a member of the Association for Corporate Growth (ACG).
John’s mission is to bring transparency and efficiency to private middle market M&A deals.