Nick welcomes Denis Mezheritskiy, founder and CEO of ROI Advisors, to delve into the intricate world of mergers and acquisitions (M&A). With over 21 years of experience in the field, Denis shares his journey from acquiring his first business in college to becoming a leading M&A broker specialising in companies with $1 million to $5 million in EBITDA.
The conversation explores the current landscape of M&A, the importance of preparing businesses for sale, and the various buyer profiles, including corporate executives and small private equity firms. Denis emphasises the significance of understanding business valuation, the emotional aspects of selling, and the strategies to maximise company value.
KEY TAKEAWAYS
- Many business owners are unaware of the true value of their companies. It's crucial to assess the business's financials, including EBITDA, and understand how factors like recurring revenue and operational stability can impact valuation.
- Preparing a business for sale involves more than just putting it on the market. Owners should focus on improving their business's fundamentals, such as financial reporting and management structure, to maximise its value and attract potential buyers.
- Sellers often have unrealistic expectations regarding the sale price of their businesses. It's essential to manage these expectations by providing a clear understanding of market conditions and realistic valuations based on historical performance.
- The market for business acquisitions includes various types of buyers, from corporate executives seeking to transition into entrepreneurship to small private equity firms. Understanding the motivations and capabilities of these buyers can help sellers position their businesses effectively.
- Selling a business can be an emotionally challenging process for owners, as it often ties into their identity and retirement plans. It's important for sellers to have a clear vision of their post-sale life and to prepare for the transition both financially and emotionally.
BEST MOMENTS
"I see a lot of videos on Instagram about those no money down deals, but I've had over 85 transactions and only two were no money deals, and they weren't great acquisitions."
"There's a really fine line between the depth that you go into, so it doesn't become a waste of time."
"If your business is not growing, then you're going downhill. I see this all the time, especially folks who are getting comfortable."
"A high value business provides many options for you. One of those is selling for a lot of money, but there's more to it than that."
"Most of the time, we're dragged into situations where sometimes it's too late, sometimes we don't have time to plan."
GUEST RESOURCES
Denis Mezheritskiy LinkedIn - https://www.linkedin.com/in/denis-mezheritskiy-55170153
VALUABLE RESOURCES
Scale Your Business Beyond 8 Figures - Watch This Video: https://go.highvalueexit.com/scale-beyond
Exit Your Business For Millions - Download This Guide: https://go.highvalueexit.com/opt-in
Nick’s LinkedIn: https://highvalueexit.com/li
Nick Bradley is a world-renowned author, speaker, and business growth expert, who works with entrepreneurs, business leaders, and investors to build, scale and sell high-value companies.
He spent 10+ years working in Private Equity, where he oversaw 100+ acquisitions, 26 exits, and over $5 Billion in combined value created. He has one of the top-ranked business podcasts in the UK (with over 1m downloads in over 130 countries). He now spends his time coaching and consulting business owners in building and scaling high-value business towards life-changing exits.
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