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Why Accurate Financials are Key to Success in Buying, Selling, and Valuing Businesses
What you missed on How2Exit This week
Ronald Skelton
October 08, 2024
Weekly Recap
E247: Why Accurate Financials are Key to Success in Buying, Selling, and Valuing Businesses
About the Guest(s):
Ryan Hutchins is an accomplished entrepreneur and expert in the field of mergers and acquisitions. With a background in finance and accounting from his time at Deloitte, Ryan has built his expertise in business valuation. He is the founder of Peak Business Valuation, a firm dedicated to providing independent third-party valuation services for SBA lenders and individuals. Under his leadership, the company has grown exponentially, conducting over 1,400 valuations annually. In addition to his role at Peak Business Valuation, Ryan is an active acquisition entrepreneur, with investments in various sectors, including water softener installation, concrete contracting, striping, plumbing, baking, and pizza franchises.
Episode Summary:
Join Ronald Skelton in this intriguing episode of the "How to Exit" podcast as he engages with Ryan Hutchins, a seasoned expert in business valuation and mergers and acquisitions. With extensive experience in the field, Ryan shares his remarkable journey from a corporate finance role to becoming the owner of multiple thriving businesses across various industries. This dialogue dives deep into the intricacies of valuing businesses, acquiring profitable ventures, and the lessons learned along the way.
Throughout the episode, Ryan Hutchins unveils the essential strategies behind successful business valuations and the factors influencing a company's worth. Listeners gain insight into the practical application of valuation approaches such as the market approach and income approach. Ryan also shares personal stories from his entrepreneurial journey, illustrating how he navigates the complex world of acquisitions, highlighting both the rewarding successes and the challenges faced. Tune in to discover valuable perspectives and actionable advice for anyone interested in mergers, acquisitions, and the art of assessing business value.
Key Takeaways:
There are three primary approaches to valuing businesses: the market approach and the income approach are the most common in private companies.
Financial cleanliness is crucial for accurate business valuation, and it can heavily influence perceived risk and business attractiveness.
Investing in businesses requires careful assessment, as external and internal factors can significantly impact success.
The entrepreneurial journey often involves identifying opportunities where others might not, and using risk appetite as a guide.
Regular and detailed bookkeeping is essential for business success, impacting decisions and facilitating smoother transactions.
Article:
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