Partner Spotlight: Educating Individuals on the Value of a Business with Ryan Hutchins from Peak Business Valuation

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Hey, thanks for tuning in to another Partner Interview at EcomBalance. At EcomBalance, we’re all about creating win-win partnerships where we are able to grow with other companies in the eCommerce space. 

 

In this exclusive interview, we interview Ryan Hutchins from Peak Business Valuation, America’s highest rated and most reviewed business valuation firm.

 

Ryan Hutchins is a father of two kids, the founder of Peak Business Valuation & Vizion Capital, and a partner of Utah Concrete and Water Science. He has been featured on 40 under 40, National Association of Certified Valuators and Analysts (NACVA), and has been a guest on shows such as John Lee Dumas’s EOFIRE, CNBC’s The Profit, and ThriveTime Show! Ryan Hutchins is a member of the AICPA and American Society of Appraisers, is an author of Skyrocketing Your Business Value, and is the owner of America’s highest rated and most reviewed business valuation firm, PeakBizVal.com. Throughout his career, he’s founded or purchased 3 multi-million dollar businesses including:
www.mywaterscience.com
www.peakbizval.com
www.utahconcrete.biz

 

We hope that you enjoy the interview and that it brings value to you as an eCommerce business owner.

 

Connor: Hey Ryan, thanks for taking the time to chat with us today. As a company, one of our goals is to highlight our partners so that our clients can benefit where it makes most sense. To get started, can you give us a high-level introduction to Peak Business Valuation and a little bit about how the company got started?  

 

Ryan: About Us video. Peak Business Valuation was founded by my wife, Kelli Hutchins, and I in August of 2018. The Company was formed to focus on helping buyers and sellers understand the value of a business for transaction purposes. In 2022, we are on pace to help over 1,000 buyers and sellers.

 

Connor: Thanks for sharing that! Can you dive a bit more into the business appraising services that you offer? Our audience is always looking for reputable companies that they can lean on for specific parts of their eCommerce businesses.  

 

Ryan: Here are our articles on valuing an eCommerce business: https://www.youtube.com/watch?v=DDkihgXNENs and valuation multiples for an eCommerce business: https://peakbusinessvaluation.com/valuation-multiples-for-an-ecommerce-business/

 

These articles rank either 1 or top 5 on Google

 

Connor: Jumping off of that…when you’re thinking about your ideal customer, who is that? Where are they selling online? Where are they located in the world? How much sales do they typically have in a year? If there’s any other qualities, please include them as well. We’re all about making introductions where it benefits both parties. 

 

Ryan: Our ideal customer is anyone looking to buy or sell a business. We only work with individuals in the United States as we understand the legal, tax, and market for eCommerce. These businesses are primarily selling through Amazon or their own website. We have worked with eCommerce companies doing anywhere from $150,000 in revenue to over $100 million in revenue. 

 

Connor: For our audience to truly understand what makes you stand out from other companies in the business appraiser space, can you share a story of how Peak Business Valuation truly helped one of its customers?

 

Ryan: Easiest way to see what sets us apart is to read our Google reviews or watch our video testimonials. We are the highest rated and most reviewed business valuation firm in the country, educating individuals on the value of a business. Business valuation is a block box to pretty much everyone and we do our best to create content to help everyone understand enough to make certain decisions. Working with Peak takes understanding the value to a whole nother level.

 

Our product is a business valuation report that provides the detail necessary to make decisions about buying or selling a business. This last week we worked with an individual in the high-end liquor and spirit business that generates about 50.0% of their sales online. Not only did we discuss how we arrived at this business, but we jumped into identifying the right buyer. Once we have the right buyer, we discuss negotiation strategies, financing strategies and how to ensure the buyer is successful at operating the business. It was an hour-long call that I typically charge $500 for, but because they ordered a business valuation it is free. 

 

Understanding the value of a business is foundational, but what you do with the business valuation afterwards is where all the added value comes into play. I want everyone I work with to feel like they are ready to buy or sell a business. I provide them with the proper referrals and introductions once they have this foundational knowledge of value. With the liquor and spirits company, I will introduce him and his buyer to financing parties and a lawyer when they are ready to ink the deal. 

 

To me the true value comes after the business valuation. Each client we work with would say just that. 

 

Connor: As you and your company think about the next year ahead, what does it look like? Are there any specific initiatives that you’re working on as a team to better your product or service for your customers?

 

Ryan: We are working towards strengthening our team and ensuring that our checklists and processes are all up-to-date. Once our core team is ready and we bring on a more senior valuation professional, I am going to train each team member on how I speak with clients after a business valuation. I cover topics like: negotiation strategy, financing strategies, growth strategies, etc. I introduce clients to bankers, lawyers, and consultants to work with. 

 

Connor: How about this…everyone loves a company’s growth story. We all naturally go through ups and downs as a company. What was one of the biggest challenges that the company faced in its growing stages? 

 

Ryan: We are currently experiencing this challenge. Due to the technical nature of business valuation, there are very few professionals in the industry. The demand for high-quality valuation work is increasing, but the number of professionals is decreasing. There are dozens of valuation firms across the country looking for a senior valuation professional. I have been looking for over two years and have not found the right person to join our team. This one higher alone would remove me as the bottleneck in our operation, resulting in our ability to double in size over the next year. 

 

Connor: Thanks! Let’s talk some eCommerce! Where do you see the industry heading in the next 1-2 years? Any big changes that you’re predicting for the industry? How can eCommerce companies prepare for it?

 

Ryan: Great question. Every eCommerce Company that we have valued over the last three years had an amazing 2020 and 2021. Month-over-month sales have been more stagnant. I expect sales to increase due to convenience, the ability to compare items, and the ability to incentivize consumers to purchase everyday and larger items. eCommerce margins are not the most attractive. Margins are below 10.0% and closer to around 6.0% on average. 

 

A strong US dollar will aid companies to purchase overseas, but wage increases have been a big headwind for most companies. 

 

Supply chain fears with China have caused eCommerce companies to look elsewhere and even look at products manufactured closer to home. 

 

Connor: Changing gears a little bit…When it comes to bookkeeping and accounting, what do you think the biggest pain points for eCommerce business owners are? Feel free to speak from personal experience as well. 

 

Ryan: Not communicating often with their bookkeeper and accountant. More importantly, looking at their numbers on a monthly basis is not enough. Documenting and looking at financials on a weekly basis and looking at weekly KPIs will help steer the company in the right direction. I have a system that is in place for three of my companies that takes 30 minutes each week to look at financials and KPIs. 

 

Connor: Okay, here’s an open mic opportunity. If there’s one thing that you’d want the EcomBalance community to hear from you, what would it be?

 

Ryan: Anyone can own and operate a company. Those who succeed understand their cash flow and the underlying financial figures of their business. A solid bookkeeper like EcomBalance is pivotal!

 

Connor: As we close this out, I just have one more question. Where is the best place to find and follow you and the company online? Also, if you have one, is there any special offer that you’ll be offering to the community today? 

 

Ryan: peakbizval.com. We are happy to offer a 10.0% discount to your audience. They can also download our free eBook: Skyrocketing Your Business Value

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Connor Gillivan

CMO and Founder of EcomBalance. Founded FreeUp (acquired in 2019). Founder of Outsource School. Published Author. Investor.

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