The Difference Between 4x vs.8x EBITDA

For many owners, private equity feels like a black box: a buyer shows up with a multiple, some debt, and a term sheet, and it is hard to tell whether you are getting a fair shake or being set up for a painful re-trade later. 

In this Inside the Mind of an Acquirer episode of Built to Sell Radio, John Warrillow sits down with Speyside Equity managing director Eric Wiklendt to unpack how an operator-led private equity firm thinks about valuation, structure, and transforming a manufacturing company after the deal so you discover how to: See why one company might fetch 4 times EBITDA and another 8 times, and which practical levers actually move your multiple higher.

• Spot the customer concentration trap that can knock a full turn or more off your valuation when a single client dominates your EBITDA.
• Decode how private equity funds really make money, and why many owners would be better off in an index fund than in the wrong PE partner.
• Recognize the telltale signs of a buyer who bids high only to retrade 25 to 30 percent off the price during diligence.
• Use smarter leverage decisions to avoid the soul-sucking reality of running an over-indebted company after the sale.
• Identify the three operational moves Speyside Equity uses to turn a good business into a true platform: aligning management, rationalizing customers and products, and fixing an inefficient footprint.
• Reframe the emotional connection to a company so negotiations are driven by facts and risk, not by how hard the last crisis was to survive. 

If you are a business owner who may one day sell to private equity, this conversation with Eric Wiklendt will give you a clearer view of how a sophisticated buyer is really looking at your company. 

Show Notes & Links

Speyside Equity

Connect with Eric on LinkedIn

Defintions

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.

Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.

Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.

Re-Trading: This occurs when a buyer attempts to renegotiate the purchase price of a deal after initially agreeing to one. It is often seen unfavorably as it occurs after due diligence, seemingly exploiting newly discovered information.

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About Our Guest

Eric Wiklendt

Eric Wiklendt is the Managing Partner of Speyside Capital, where he leads the firm’s investment strategy, portfolio operations, and long-term value creation initiatives. With deep expertise in private markets, Eric specializes in identifying overlooked opportunities, strengthening operational performance, and guiding founder-led businesses through transformational growth. His leadership approach balances analytical rigor with a hands-on partnership philosophy, ensuring every investment is aligned with Speyside’s commitment to resilience, stewardship, and sustainable results.