Valuations: Fiction vs. Finance: What paper valuations say vs what they really mean
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What really determines the value of a business?
In this episode I sit down with Saul Cohen, CEO of The Expert Eye, to explore the mechanics behind valuation and why it is never just about the numbers.
We look at how strong financial controls and a clear understanding of EBITDA give both buyers and sellers confidence, and how risk management can make or break a deal.
Saul and I also unpack the role governance plays in SMEs and why culture and people are often the hidden drivers of efficiency and value creation.
We discuss the responsibilities business owners must accept if they want to maximise their exit options, and challenge some common misconceptions around the role of brokers in the sales process.
If you want to understand what makes a business truly valuable and how to position yours for the best possible outcome, you need to listen to this episode.
"Valuation is never just numbers, it’s people and risk.” – Saul Cohen
You’ll hear about:
- Why understanding financial controls is crucial for business valuation.
- EBITDA being a key metric in assessing business performance.
- How risk management directly impacts business valuation multiples.
- SMEs often overlook operational risks during due diligence.
- People and culture significantly affect compliance and operational efficiency.
- Systems and processes being essential for effective governance.
- Why business owners must take accountability for their financial literacy.
- Brokers can provide valuable insights, but owners must challenge their valuations.
- Financial literacy is lacking in the SME sector, impacting decision-making.
Connect With Saul Cohen
LinkedIn - https://www.linkedin.com/in/cohensaul/
The Expert Eye - https://theexperteye.co.uk/
Connect With Julie Wilkinson
LinkedIn - https://www.linkedin.com/in/juliewilkinson-accounting/
Tik Tok – https://www.tiktok.com/@wasolutions
YouTube - https://www.youtube.com/channel/UCUvq6gfNoP_4dfIJulL6C6A
Facebook - https://www.facebook.com/wilkinsonaccountingsolutions
Website - https://wilkinsonaccountingsolutions.co.uk/
Find out more about our brilliant sponsor Acquisition Masters here - https://www.acquisitionmasters.co.uk/
Before you go, don’t forget to leave a comment and review if you got something out of this episode!
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