Business Valuation: What They Don't Tell You at Business School

Business Valuation: What They Don't Tell You At Business School | Spencer Gallagher M&A Expert Interview

Most business owners treat their company like a chore. Spencer Gallagher spent years doing exactly that until a chance meeting changed how he saw his own business, and eventually helped him sell it for millions. In this episode of the Business Growth Podcast, powered by ActionCOACH UK, Spencer breaks down what actually makes a business valuable, and how to build one that someone wants to buy.

Spencer left school at 16 with no qualifications and started his first business in his mum's back garden shed after being made redundant three times in a year. He grew that digital agency 1,100% in five years, built Sky Media's first ever website and Liverpool FC's website, and put Andy Murray on the internet, before selling the business in his late thirties. He's since spent over a decade helping agencies scale and now runs an M&A advisory business.

His core message: understand exactly what makes your type of business valuable, then build toward that number, whether you plan to sell or not.

What You'll Learn:

- Chore vs Asset Mindset: The shift Spencer made after being made redundant three times before starting his own agency in a garden shed.

- How Businesses Are Valued: Operating profit versus EBITDA, and why tech and FMCG businesses often sell on revenue instead of profit.

- The Three 20s Rule: 20% annual growth, 20% EBITDA, no single client worth more than 20% of billings.

- The Now, Next, Future Framework: Mapping what clients need today, next, and in future to stay ahead of buyers' expectations.

- What Buyers Want to See: Why recurring revenue, leadership depth, and marketing sophistication matter more than growth alone.

- How a Sale Works: Valuation, an exit-readiness audit, an information memorandum, 50 dream acquirers, and due diligence.

- Exit Routes Compared: Trade sales, MBOs, employee ownership trusts, mergers, and private equity, and who each suits.