Azure Exit Readiness Review

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This short presentation is an introduction to the Azure Partners exit planning process.

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Azure Exit Readiness Review

  1. 1. What do we do? We build businesses We have done it ourselves We now do it for a wide range of clients And it works, even in tough times. Our 5 most engaged clients returned results of: Increase in: 2008 2009 2010 2011 Turnover 31% 6% 10% 48% Profit 101% 18% 126% 74% 2
  2. 2. Who are we?Name Discipline Expertise and ExperienceMike Robson General Management, People, Expertise as MD /FD in leisure, electrical engineering and Finance and Exit publishing in UK, Europe and Australia. Developed and then sold his own companyPaul Chapman General Management, 20 years experience of high growth companies in UK, USA Marketing and Sales and Far East in MD, Marketing Director and Sales Director and NED roles. IPO experience on NASDAQNick Brown General Management and Considerable experience in the process of buying and selling Operations companies, and has run, developed and built companies both in the UK, Europe and the US.Peter Henry General Management and With a classic marketing background Peter has extensive Marketing experience in marketing director and NED roles in blue chip and SME companies.David Mellor Commercial/Investment Banking and Investment experience as Investor Director of Banking and Private Equity 3 software companies. Associated with Cass Business School.Nigel Pearcy Marketing, Sales, Operations, MD/CEO and Operations Director in a wide range of private General Management and corporately owned service and production companies. Helped develop and grow high margin, profitable businesses to successful exits 3
  3. 3. How do we do it? For seven years Azure have worked alongside business owners to create and then implement effective strategies Using the experience, processes and business tools available to us we provide pragmatic business advice and support across all business disciplines We have the skills, commercial experience and necessary knowledge to help you enhance the value of your business 4
  4. 4. Why work with Azure Partners?“I am a massive fan of the right business advisors. I wish I had not been so arrogant in the early days of my business and had taken soundings from people” - Michael Jackson, the former Chairman of Sage and now Chairman of Elder Street Investments“If I had not hired Azure I would have had to hire another Director at greater cost” - David Connaway, Azure Partners client“Azure really gave us three things – expertise in marketing and sales, a vision and clarity of purpose that we didn’t have before, and a discipline that made us focus on our strategic objectives as well as the day-to-day business.” - Peter Copley – Azure Partners client“The Azure Exit Planning Process was very valuable. It kick started the implementation of a coherent growth and exit strategy to satisfy the ambitions of all of our shareholders. Of more importance to us, the process brought the Board closer together so that we work as a unified and effective team” - Managing Director, Building Maintenance and Systems Company”. 5
  5. 5. What does the Exit Planning Process deliver?  An assessment of the risks and opportunities facing the business and recommendations for improving value before sale  An assessment of the exit routes available to you  An outline profile of potential buyers and their likely requirements  The likely range of valuations achievable on sale  An action plan and timetable to achieve an efficient sale for optimum value 6
  6. 6. Shareholder objectives on saleFor most shareholders of private businesses, the key objectives when selling are: To find three or more acquirers willing and capable of bidding for the company at about the same time To organise and present the business in such a way that the transfer of ownership is smooth and relatively quick To be able to turn down unacceptable offersEffective planning and implementation puts you in control 7
  7. 7. Sales types and valuation Can you put your business in the white zone?Valuation on Sale Fire Sale Financial Sale or MBO Strategic No Sale – Sale Plan B Strategic sales typically generate the best valuation (and income) for owners. Azure can help ensure your sale is strategic, generating the best valuation. 8
  8. 8. Plan BFacts of life: Almost all businesses are saleable Not all businesses are saleable at a price acceptable to the owners In some cases a greater value can be extracted through dividends than through saleSolution: Azure Partners release business owners from the day-to-day running of their business by putting appropriate systems and professional management in their place This enables you to retain ownership of the business and draw income from it with the confidence that it is properly run 9
  9. 9. Before saleThings to consider: Who will want to buy my company – and why? How can I develop strategic value for the potential acquirers? How can I make it less reliant on me? What am I going to do post sale?Things to do: Continue to develop and grow the business and opportunities Carefully assess, select and pursue your sale options Determine a sale price that is acceptable to you and realistic Define a Plan B in case you do not achieve an acceptable price Maintain staff moraleDefine an exit plan and successfully implement it 10
  10. 10. Sample Exit ScheduleDefine key objectives/opportunities/ issues/ actionsDefine KPIs to maximise priceEstablish exit planExecute exit plan Plan B?Maintain business performanceIdentify broker and advisorsGenerate sale documentationApproach potential acquirersEstablish shortlistDue diligenceNegotiationsAgreement Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Year 1 Year 2 Year 3 11
  11. 11. Advisor activity Corp. Fin. AZURE Lawyer Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12
  12. 12. Clients said:“The Azure Planning Process was very valuable. It kick started the implementation of a coherent growth and exit strategy to satisfy the ambitions of our shareholders”.MD – Building Services Company“We had no experience of selling a company, and we recognised that it is a complex business which you have to get right. We therefore asked Azure to advise and guide us through the process”.“Their input was invaluable and we completed a successful sale at a value in excess of what we had hoped for, whilst also meeting all other objectives and requirements”.Partner – Insurance Broker 13
  13. 13. Contact Azure PartnersFor more information about Exit Planning and how to complete theAzure Readiness Review: Website: www.azurepartners.co.uk LinkedIn: www.linkedin.com/company/azure-partners Phone: +44 (0)207 100 1233 Azure Partners New Broad Street House 35 New Broad Street London EC2M 1NH 14

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