Summary
In this episode of the In/organic Podcat, co-hosts Christian Hassold and Ayelet Shipley welcome guest Matt Bodnar, founder and managing partner at Eidolon Capital. Matt is a business owner and investor with substantial experience using M&A as a lever to acquire and grow businesses. In this episode, Matt discusses how he has leveraged his intellectual interest in valuations and deal structuring to execute creative and accretive deals. Further, Matt discusses the importance of understanding earnings and multiples in business valuation, the impact of size on valuation, and the challenges of customer concentration. Additionally, he provides strategies for sellers to maximize their exit value, emphasizing the need for thoughtful analysis and potential acquisitions to enhance business value.
Takeaways
Valuation can be simplified to earnings and multiples.
Size significantly impacts business valuation multiples.
Customer concentration can negatively affect valuation.
Sellers should consider adding businesses to increase value.
Earnings adjustments can substantially influence business valuation.
Understanding market perceptions is crucial for sellers.
Agencies offer unique opportunities for cross-selling and growth.
Chapters
00:00 Coffee Preferences and Brewing Techniques
02:54 Restaurant Business Insights and Challenges
05:42 Valuation Philosophy and Business Insights
14:44 Valuation Fundamentals: Understanding Multiples
22:12 Earnings and Adjustments: The Art of Valuation
34:20 The Size Premium: Why Bigger is Better
38:12 Customer Concentration: Risks and Strategies
41:53 Maximizing Exit Value: Key Strategies for Sellers
Pepperdine Capital Markets Report discussed on the podcast
https://digitalcommons.pepperdine.edu/gsbm_pcm_pcmr/
Connect with Christian and Ayelet
Ayelet’s LinkedIn: https://www.linkedin.com/in/ayelet-shipley-b16330149/
Christian’s LinkedIn: https://www.linkedin.com/in/hassold/
In/organic on YouTube: https://www.youtube.com/@InorganicPodcast/featured
Connect with guest Matt Bodnar
https://www.linkedin.com/in/mattbodnar/
