We had a fascinating conversation with Mark Dufilho on how a business owners of consumer product brands can raise their evaluations pre-sale. He leads us through a crash course on how to bring a consumer brand to market and achieve liquidity for their business in the wake of China tariffs.
About our guest:
Mark Dufilho is a Managing Director in Houlihan Lokey’s Dallas office, where he is a senior member of the Consumer, Food & Retail Group. He has nearly two decades of experience providing transaction advisory and corporate finance services to small and mid-cap public and private companies and private equity firms across several branded consumer products segments, including branded apparel, consumer electronics, health & beauty, household & home products and retail. Dufilho graduated summa cum laude with B.B.A.s in finance and international business from Loyola University, and he holds an M.B.A. from Harvard Business School.
Advisory and full service for MMA for middle market and private companies. Go to market “bankers only specialize in technology.” Focus only on consumer products… Help sellers achieve liquidity for their business
Key takeaways from this episode:
Background story of Houlihan Lokey, Inc. – 3:18
Biggest mistake business owners make when thinking about EBITDA multiples – 4:43
The true way to determine the value of your business – 5:00
General Breakdown of an EBITDA and a multiple – 5:11
The different types of investors and the types of return they expect – 7:07
How tariffs are impacting an investors evaluation of your company – 8:31
Are tariffs an appropriate Addback? – 10:26
Should you still take your company to market? – 11:27
How consumer product brands should approach buyer options – 13:00
Future analysis of our marketplace – 15:18
Which sales channel should you focus on to drive up your evaluation – 16:10
The benefits of building an ecommerce sales portfolio with big box retailers – 21:39
The most important 3 threes to focus on for a higher evaluation pre-sale – 23:34
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Want more information? Related post: How to Survive China Tariffs