GrowCFO Show

GrowCFO Show


#177 How to Value Your Business with Tim Merryweather Former CFO at 10x Investments

April 02, 2024

Tim Merryweather joins Kevin Appleby on the GrowCFO Show ahead of a Webinar in April about how to value your business. Tim is an experienced CFO. He describes his career journey, including working in London, Singapore, and the Middle East, and highlights his practical experience in valuing and acquiring businesses.


Tim and Kevin discussed Tim’s early experience at Mouchel, a highly acquisitive former FTSE250 company with a high valuation multiple. They talked about valuing a business being acquired, with Tim explaining that they looked at market indications, valuation metrics, and the combined business’s worth.


Tim emphasizes the importance of securing relationships and staff during the acquisition process to maximize value. Companies that make frequent acquisitions may increase risk profiles, leading to a lower valuation multiple.


When dealing with Private Equity, valuation multiples are based on earnings visibility and forecastability. The quality of a company’s management team is a key factor in determining its valuation multiple. Valuing early-stage businesses requires balancing DCF techniques with market experience and size of opportunity as cashflows are uncertain.


Links

Timestamps

Business growth and expansion with a South African finance leader. (0:11)


Career progression in finance, from controller to CFO. (3:25)


Valuing a business through acquisition. (8:19)


Acquisition strategies and valuation multiples. (13:35)


Private equity valuation techniques and market trends. (18:05)


Startup valuation and investment strategies. (22:37)


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