Built to Sell Radio Ep 522 The difference between 4x vs.8x EBITDA, Customer Concentration Discounts, PE Re-trades with Eric Wiklendt on this special edition of Inside the Mind of an Acquirer
4 snips
Nov 28, 2025 In this insightful discussion, Eric Wiklendt, Managing Director at Speyside Equity, reveals the inner workings of private equity and its impact on business valuations. He explains the crucial difference between 4x and 8x EBITDA multiples, emphasizing factors like risk and growth potential. Eric discusses how customer concentration can significantly affect pricing and shares strategies for navigating complex deals. With a focus on operational improvements, he highlights what truly makes a business a valuable platform in today's market.
AI Snips
Chapters
Transcript
Episode notes
Explain Complex Businesses Simply
- Explain your business simply: outsiders lack your history and context.
- Prepare clear, simple narratives so buyers grasp complex operations quickly.
Use Advisors To Manage Seller Expectations
- Use experienced intermediaries to manage seller emotions and expectations.
- Good investment bankers ease negotiations and prevent deal fatigue or irrational pricing demands.
Minimize Retrades With Full Disclosure
- Expect some LOI-to-close erosion if due diligence reveals negatives.
- Work to provide full information upfront to minimize surprise retrades.