M&A Investment Banking with Channing Hamlett

by David King

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Sep 10, 2022

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In this episode, we’re joined by M&A investment banker Channing Hamlet. As Managing Director ofObjective, Investment Banking & Valuation, Channing specializes in M&A and Valuation Advisory while leading the firm’sBusiness Services Practice.

Channingexplains how he and Objective work with business owners to sell their companies (typically ranging in value from$10 to$100 million).

Sellers’dos and don’ts

  • Don’t set a price or publish it to all buyers – let the market set the price (let buyers make offers).
  • Do get several interested buyers – from over100 potential buyers, narrow it down to a limited selection of the best-value buyers.
  • Don’t set the price too early –it dissuades prospective buyers.
  • Do prepare audited financial statements – this gives credibility to sellers and confidence tobuyers.The same applies when accountants review earnings before interest, taxes, depreciation, and amortization—or EBITDA.

EBITDA is a widely recognized indicatorof healthyfinances and the potential to generate cash.Accountants determine the validity of EBITDA through a Quality of Earnings analysis.

Transparency

Channing advises full transparency to eliminate anychance of buyers getting cold feet later and to keep the deal in line with his simple three-point plan:

  1. Make the Buyer fall in love with the business
  2. Sign the LOI.
  3. The Buyer does duediligence and closes the purchase.

Channing Hamlet

Channing brings more than 25 years’ experience ininvestment banking and business valuation. Before joining Objective, he served as Managing Director atCabrillo Advisors. He was instrumental in leading their M&A execution andgrowing their valuation practice from its inception to its current status—a national entity serving more than 700 clients. He also served as a Principal at LLR Partners, a $260 million private equity firm and member of Legg Mason’s Investment Banking group.

Objective, Investment Banking & Valuation

 Objective’s corporate finance activities include public offerings, debt placement private alternative to offering a publicly offered security, fairness opinions for transactions, and Mergers and Acquisitions.