Episode 383: Sell Your Business for a Premium with Channing Hamlet
From closing dinner conversations that changed his career trajectory to advising on transactions up to half a billion dollars, Channing Hamlet shares proven strategies for selling businesses at premium valuations through proper preparation, understanding sector-specific value drivers, and creative deal structures.
In this episode of the DealQuest Podcast, host Corey Kupfer sits down with Channing Hamlet, Managing Director at Objective Investment Banking and Valuation, who has over 30 years of experience advising business owners on management issues, transaction execution, and business valuation. Channing's firm specializes in lower middle market transactions, typically ranging from $10-25 million up to $100-150 million in value.
WHAT YOU'LL LEARN:
In this episode, you'll discover how buyer expectations have dramatically shifted over 25 years and why preparation requirements for premium valuations have intensified. Channing explains why clean accounting is no longer optional, how financial projections can make or break your valuation, and the three key value drivers beyond revenue and EBITDA. You'll also learn creative deal structures that can save transactions when traditional financing becomes challenging.
CHANNING'S JOURNEY:
Channing's path into dealmaking started at the family dinner table, where his father frequently hosted business visitors for dinner conversations about deals and transactions. His pivotal moment came while working at Legg Mason doing M&A, when a patriarch from a third-generation family business pulled him aside at a closing dinner and shared how much the work had changed his family's life. That moment hooked him on helping entrepreneurs and family businesses navigate successful exits.
KEY INSIGHTS:
In the mid-1990s, private equity firms paid four to six times EBITDA. Today, good companies sell for 10 to 14 times EBITDA, but buyers expect sellers to show up polished and prepared. Channing identifies three major value drivers beyond EBITDA. First, understanding what drives value in your specific sector. Second, building predictability through recurring revenue and systematized operations. Third, clearly articulating your differentiation and unique value proposition.
Financial projections matter because selling takes approximately nine months, meaning buyers pay based on projected results, not historical performance. A last-minute budget won't stand up to scrutiny.
Channing also shares a creative deal structure where seller financing at 10% interest saved a transaction when traditional bank financing fell through.
Perfect for business owners considering an exit in the next 3-5 years, M&A advisors working with lower middle market companies, and anyone wanting to understand what truly drives premium valuations.
FOR MORE ON THIS EPISODE: https://www.coreykupfer.com/blog/channinghamlet
FOR MORE ON CHANNING HAMLET:
https://objectivecp.com
https://www.linkedin.com/in/channing-hamlet/
FOR MORE ON COREY KUPFER
https://www.linkedin.com/in/coreykupfer/
https://www.coreykupfer.com/
Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
Get deal-ready with the DealQuest Podcast with Corey Kupfer, where like-minded entrepreneurs and business leaders converge, share insights and challenges, and success stories. Equip yourself with the tools, resources, and support necessary to navigate the complex yet rewarding world of dealmaking. Dive into the world of deal-driven growth today!
Episode Highlights with Timestamps
[00:00] - Introduction: Channing Hamlet's journey from family dinner table conversations to investment banking
[02:17] - Growing up around business deal discussions and choosing the outdoor life [03:45] - The closing dinner moment that changed everything at Legg Mason
[08:19] - How the M&A landscape has transformed over 25 years
[10:26] - Why buyer expectations and preparation requirements have increased
[18:52] - Understanding sector-specific value drivers through the printing industry example
[23:39] - Market outlook for 2023 and beyond
[31:43] - The three legs of Objective's valuation practice
[40:03] - Finding Objective Capital Partners and getting in touch
Guest Bio
Channing Hamlet is a Managing Director at Objective Investment Banking and Valuation, focused on leading the firm's valuation advisory service practice and transaction execution for its investment banking services practice. He is a results-driven executive with 30+ years of experience advising owners on management issues, transaction execution, and business valuation. Channing draws on a diverse background that includes direct management experience, strategy consulting, private equity investing, investment banking, and business appraisal experience to advise his clients. He is actively involved in the LA and San Diego business communities and has spoken at numerous organizations including EO. He was chosen as the Investment Banking Visionary for 2022 and 2021 in Banking and Finance magazine.
Host Bio
Corey Kupfer is an expert strategist, negotiator, and dealmaker with more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker deeply passionate about deal-driven growth. He is the creator and host of the DealQuest Podcast.
Show Description
Do you want your business to grow faster? The DealQuest Podcast with Corey Kupfer reveals how successful entrepreneurs and business leaders use strategic deals to accelerate growth. From large mergers and acquisitions to capital raising, joint ventures, strategic alliances, real estate deals, and more, this show discusses the full spectrum of deal-driven growth strategies. Get the confidence to pursue deals that will help your company scale faster.
Related Episodes
Episode 350 - Tom Dillon: When NOT to Take Venture Capital Money: Explore valuation considerations and preparing for exit from a fractional CFO perspective.
Episode 330 - Pete Mohr: Building Exit-Ready Businesses: Discover how to build a business that commands premium multiples through systematization and predictability.
Episode 332 - John Martinka: Exit with Style, Grace, and More Money: Learn practical strategies for maximizing value when selling your business.
Episode 339 - Solocast 74: Exit and Succession Planning: Corey's insights on preparing for successful business transitions and the importance of advance planning.
Episode 88 - Internal Succession Deals: Explore options for transitioning business ownership to next-generation leadership.
Keywords/Tags
business valuation, selling a business, M&A preparation, EBITDA multiples, exit strategy, investment banking, lower middle market transactions, sell-side advisory, company valuation, premium valuation, buyer expectations, financial projections, value drivers, private equity, business sale preparation, transaction execution, family business sale, entrepreneurship, dealmaking, business growth strategies
