The M&A Mastermind Podcast - Episode 20 - The Difference Between Valuation & Assessment

The M&A Mastermind Podcast is a deep dive into the world of mergers and acquisitions, led by Nick Olsen with guest Joe Orlando. In this episode, they explore the differences between a valuation and a business assessment, drawing from Joe's rich background in business valuations.

The conversation delves into Joe's journey into the profession, starting with his experience in investment banking and gradually transitioning into fundamental valuation. He shares insights from his time in the industry, working with various firms and eventually joining Exit Strategies Group.

Nick and Joe discuss the unique structure of Exit Strategies Group, which encompasses investment banking, and valuation servicers. Joe explains the frequency and scope of their valuation work, touching on diverse cases such as discount letters and portfolio assessments.

They emphasize the importance of assessments before M&A engagements, highlighting how assessments help identify the most probable selling price and value of the business. Joe provides a detailed explanation of their approach to valuation, emphasizing the significance of understanding market dynamics and mitigating risks.

The conversation also covers the seamless handoff between the valuation and M&A sides within Exit Strategies Group. They discuss the crucial role of the valuation model and the collaborative efforts of their team members in ensuring a smooth transition.

Nick Olsen raises questions about the formal valuation process and its relevance in M&A situations. Joe explains the scenarios where formal valuations are necessary, particularly in cases involving gift tax exemptions or estate planning.

The episode concludes with a success story from an M&A engagement where a deep dive into how add backs significantly increased the purchase price, showcasing the value that a thorough assessment can bring to clients.

Overall, The M&A Mastermind Podcast provides valuable insights into the intricate world of mergers and acquisitions, offering a blend of professional expertise and real-world experiences.