Essential Business Performance Metrics for M&A Advisors
The podcast episode discusses the importance of understanding and analyzing key business performance metrics in the M&A process, emphasizing on metrics like sales per employee, employee turnover rate, and operating cash flow, and offers a comprehensive worksheet with various valuation ratios and metrics to better guide clients and position oneself as an expert.
Show notes: https://podcast.mesource.org
In this episode of the M&A Source podcast, Dave Dejewski dives deep into essential business performance metrics that significantly impact business valuation and success. Dave discusses key metrics such as EBITDA, employee activity ratios, and cash flow ratios, providing insights into their importance and how to leverage them for better client guidance. He shares practical examples from client experiences and offers a comprehensive worksheet of various metrics for M&A professionals.
The episode discusses the importance of understanding and analyzing key business performance metrics in the M&A process, emphasizing on metrics like sales per employee, employee turnover rate, and operating cash flow, and offers a comprehensive worksheet with various valuation ratios and metrics to better guide clients and position oneself as an expert.
David emphasizes the value of presenting oneself as an expert by having in-depth knowledge of these metrics and being able to have meaningful conversations with sellers and buyers. By analyzing these metrics, M&A advisors can drive improvements, increase the value of the businesses they represent, and remove friction from the transaction process.
The offer of a worksheet with 56 different valuation ratios, sector-specific ratios, profitability ratios, operational metrics, and more is a valuable resource for M&A professionals to incorporate into their practice and better serve our clients.
The learn more about M&A Source, please visit us at https://MASource.org
David Dejewski
Managing Director / Host of the M&A Source Podcast
David Dejewski is the host of the M&A Source Podcast and a business leader with a diverse background in media, communications, and strategic leadership, including significant contributions to the U.S. Department of Defense. David’s media journey began in 1994 when he produced Images and Words, the Other Side of D.U.I., a 22-minute film aimed at educating young people about the dangers of drinking and driving. Supported by organizations like the US Navy and the College of Charleston, the project exemplified his early commitment to impactful communication.
David has since produced three successful podcast programs, the first of which launched in 2005 to address military healthcare leaders globally while serving as the Chief for Defense Business Transformation in the Military Healthcare System. During his tenure, he led efforts to establish a business transformation process that reviewed over $1 billion in investments, sending $200 million back to the Treasury due to redundancies or inefficiencies. David’s role was critical in aligning business IT investments with enterprise architecture, ensuring compliance, and delivering results that saved taxpayer dollars. His second podcast expanded his reach to a global audience as chair of a 501(c)(3) organization, where the show still receives hundreds of monthly downloads.
In his current role as Managing Director at Transworld Business Advisors, David specializes in problem-solving, business sales, M&A, and franchising for small and mid-market companies. His leadership extends to the M&A Source, where h… Read More
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