Why Doesn’t Revenue Equal Enterprise Value in Business with Holli Moeini
APR 14, 202636 MIN
Why Doesn’t Revenue Equal Enterprise Value in Business with Holli Moeini
APR 14, 202636 MIN
Description
Most founders think:👉 “If I grow revenue, everything else will work itself out.”That’s not how it works.In this episode, I sat down with Holli Moeini (CFO & M&A advisor) to break down what actually drives enterprise value—and why chasing revenue alone can leave you stuck, stressed, and cash poor.If you’re scaling right now, this is a conversation you need to hear.Revenue vs. ValueRevenue looks good.But it’s not what builds a valuable business.Earnings do.The Cash Flow ProblemA lot of brands are growing… but constantly tight on cash.If you’re not around 10% net income, growth gets harder—not easier.Where Profit Gets LostWe talked about SG&A and overhead.If that gets out of control:Margins disappearFlexibility disappearsGrowth slows downWhat Buyers Actually Care AboutIt’s not your top-line.It’s:Clean financialsConsistent EBITDAPredictabilityThat’s what drives valuation.Key TakeawaysRevenue ≠ valueProfit funds growthDiscipline drives scalabilityBuyers look at earnings, not hypeBuild it right early—or pay for it laterTimestamps[00:00:00] – Why Most Founders Stay Cash Poor[00:01:00] – Revenue vs Enterprise Value (Big Misconception)[00:02:00] – Why Earnings Matter More Than Revenue[00:03:30] – How Buyers Actually Value Your Business[00:05:00] – The KPI Founders Obsess Over (And Why It’s Wrong)[00:07:00] – The 10% Profit Rule for Sustainable Growth[00:08:30] – How to Reduce SG&A Without Hurting Growth[00:10:00] – The Hidden Cost of Scaling Too Fast[00:12:00] – What Smart Buyers Look for Instantly[00:14:30] – Why Deals Fall Apart in Due Diligence[00:17:00] – Accounting Mistakes That Cost Millions[00:18:30] – LOIs, Trust, and “Retrading” Explained[00:20:00] – Red Flags That Kill Deals Fast[00:23:00] – Why You NEED a CFO Before Selling[00:25:00] – Earnouts: Where Sellers Get Burned[00:27:00] – Working Capital: The Million-Dollar Mistake[00:28:30] – The #1 Trait of Billion-Dollar Operators[00:31:00] – Biggest Exit Mistake Founders Make[00:32:00] – How Buyers Lose Value After Acquisition[00:33:30] – The Right Way to Integrate a New TeamAsk yourself:👉 Are we building something that looks big… or something that’s actually valuable?If you want help building a franchise that actually scales:👉 Go to guycoffey.com and book a free strategy callI work with founders who want to scale without losing control or burning cash.Connect with Guy Coffey:LinkedIn: www.linkedin.com/in/guycoffeyWebsite: www.guycoffey.comInstagram: @guycoffeyYouTube: @guycoffey