The Franchise Scale Up Show with Guy Coffey
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. Value Revenue looks good. But it’s not what builds a valuable business. Earnings do. The Cash Flow Problem A 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 Lost We talked about SG&A and overhead. If that gets out of control: * Margins disappear * Flexibility disappears * Growth slows down What Buyers Actually Care About It’s not your top-line. It’s: * Clean financials * Consistent EBITDA * Predictability That’s what drives valuation. Key Takeaways * Revenue ≠ value * Profit funds growth * Discipline drives scalability * Buyers look at earnings, not hype * Build it right early—or pay for it later Timestamps [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 Team Ask 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 call I work with founders who want to scale without losing control or burning cash. Connect with Guy Coffey: LinkedIn: www.linkedin.com/in/guycoffey [https://www.linkedin.com/in/guycoffey] Website: www.guycoffey.com [https://www.frenchiesnails.com] Instagram: @guycoffey [https://www.instagram.com/guycoffey] YouTube: @guycoffey [https://www.youtube.com/@guycoffey]
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