Decoding Market Value: Navigating Business Valuations with an Industry Expert
In this interview, I had the pleasure of chatting with Emery Ellinger, the CEO of Aberdeen Advisors. Emery shared valuable insights into the world of business sales, explaining how Aberdeen Advisors, is a group of former business owners committed to helping others get the most value when selling their companies. Emery’s experience and dedication to aiding entrepreneurs in maximizing their company’s worth make this conversation essential for anyone dealing with the intricacies of business transactions.
Hey there! So, during our conversation with Emery, we discovered some really important insights. At Aberdeen Advisors, they offer crucial guidance on things like financials, developing your management team, and diversifying your customer base to boost the value of your company in preparation for a sale. What’s interesting is that recent market trends have shown a whopping 67% increase in earn-outs, which is linked to challenges in lending and debt markets impacting all-cash transactions. It’s worth mentioning that there’s a noticeable shift towards private equity as the dominant buyer, with a strong focus on financials and returns, and they’ve got some serious capital to back their acquisitions.
Now, if you’re a business owner considering a sale, there are a few strategic pieces of advice to keep in mind. First off, make sure you prioritize your financial preparation. Then, take the time to build a top-notch management team. And finally, try your best to establish recurring revenue streams to really maximize your business’s value.
Questions I ask Emery:
- [0:09] Tell us a little bit about Aberdeen.
- [01:30] How many companies do you represent at any given time?
- [02:25] What are some of the things you do to identify and nurture those businesses?
- [03:32] Are there any trends in terms of where valuations are going up or down that you’ve seen either on the buying side or the selling side?
- [07:07] Tell us about the size of the companies that you’re representing
- [08:04] Are you seeing any shifts in who the buyers are?
- [09:50] If you’re a business owner and you’re thinking about selling in a few years, what are the top three things that you should be thinking about and doing now?
- [12:30] Are you seeing a trend with companies that don’t have recurring revenue understand what you’re talking about.
- [16:06] Tell us about your experience with your WBN remote professional Bianca.
- [18:02] What has your WBN professional enabled you, the president and the rest of the team to do?
- [20:55] Where can people find out more about you and Aberdeen?
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