Deal Talk With 7ma

With more than 25 years of experience advising businesses, Leroy Davis knows the sweet spot for selling a company. While many entrepreneurs have heard of the $20 million valuation rule, he shares there’s much more to it than numbers and forecasting. “We don’t put a hard line on 20 [million of revenue], we try to dig on some of these more intangible factors,” Leroy says. “And we get surprised regularly with some of the revenue multiples that we see, particularly in today’s market.” According to Leroy, entrepreneurs, particularly those in tech, must consider many financial factors when determining when to sell — and having a team of experts by their side can provide a complete picture of their options. This team is also invaluable to forecasting, one of the most important areas that potential buyers look for. Not hitting numbers is the number one reason why deals go sour, Leroy says. He also talks about how to set yourself up to attract the right buyer at the right time. On this episode of Deal Talk with 7MA, L