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Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
Outsourced Corporate Development Services for the Middle Market
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Outsourced Corporate Development Services for the Middle Market

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PowerPoint presentation on Corporate Development Services program

PowerPoint presentation on Corporate Development Services program

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  • 1.
    • Corporate Development Services
    • for the Middle Market
  • 2. Corporate Development Program
    • Focus
      • Middle market size businesses
      • North America
      • B to B
      • Manufacturing & Distribution, Services
    • Client Profile
      • Small/Mid Cap Corporations and privately held companies
      • International companies looking to expand in NA
      • Divisional business units
    Corporate Development Acquisition Divestiture Fit & Value Pre-determined Value Marketing Value Transaction Strategic Assessment Due Diligence Research Candidate Development
  • 3. Value Proposition
  • 4. Acquisition
    • Many acquisitions become emotional rather than strategic buys. We help keep things in perspective…
      • Analyze strategic position and alternatives
      • Market Intelligence
      • Research and develop candidate list
      • Solicit candidates
      • Facilitate due diligence Process
      • Coordinate purchase agreement process
    Corporate Development Acquisition Divestiture Fit & Value Pre-determined Value Marketing Value Transaction Strategic Assessment Due Diligence Research Candidate Development
  • 5. Strategic Assessment
    • Strategic position
      • Market Attractiveness
      • Competitive position
      • Vertical and horizontal synergy opportunities
    • Analytical tools
      • 4- Block Benchmarking
      • SWOT Analysis
      • Channel To Market Metrics
      • ROI Modeling
    Product Offering Narrow Broad Market Growth Low High Future Value Synergy Value Share Value Niche Value Strength Opportunities Weakness Threats
  • 6. Research & Candidate Development
    • Rate each potential acquisition candidate using a ten question quantifiable technique.
    • Determine the availability of the acquisition candidate, (including valuation)
    • Networking avenues to candidates
    • Introductory communications
    • Targeted mailing campaign
  • 7. The Deal
    • Getting to the deal stage can take 18+ months. Success is dependent upon
      • Emphasis on strategic value vs. opportunistic price
      • Effective due diligence is critical
        • Team selection
        • Project management
        • Synergy & market value validation
      • Negotiations
        • Reps & warranties
        • Transition services
        • Management retention
  • 8. Divestiture
    • Businesses need to prune in order to grow. We provide the “sheers” or processes needed to maximize results
      • Testing Fit & Value
      • Pre-determined Value
      • Marketing Value
      • Transition Value
    Corporate Development Acquisition Divestiture Fit & Value Pre-determined Value Marketing Value Transaction Strategic Assessment Due Diligence Research Candidate Development
  • 9. “ Most Companies wait too long to divest. They should sell off businesses long before they become a burden.” McKinsey Quarterly- Divesting Proactively
  • 10. “ Corporations that take a disciplined approach to divestiture not only sharpen their strategic focus on their core but also create nearly twice as much value for shareholders “ How the Best Divest -Harvard Business Review
  • 11. Defining a D ivest-Business
    • Business unit within a larger division or group .
      • Sales : $10 to $100 million
      • 10 to 250 employees
    • No strategic value to the parent company
    • Under-resourced and over-burdened with corporate mandates and initiatives
    • Little attention given to business’ markets
    Corporate Division A Division B Division C Core Business D - Business Core Business D - Business Core Business D - Business
  • 12. Test For Fit and Value
    • Fit
      • Keeping them isn’t essential to positioning your company for long-term growth and profitability
    • Value
      • They’d be worth more in any other company’s portfolio than in yours
    Long-term fundamentals are sound Grow unit’s intrinsic value by 15%+ Revenues meet corporate threshold Textron Three Tests of Value
  • 13. Valuing The Business For the Middle Market
    • Focus on key value drivers
    • Value considerations
      • Organization strength
      • Corporate dependence
      • Asset utilization
      • Market position
      • Customer Mix
      • Liabilities
    • Take a buyers perspective
    • Pre-determined Value (PDV) minimizes valuation debate going forward in the process.
    Strategic Synergy Performance *3-5X *4-6X *5-7X Financial Competitor Market Expansion * EBITDA Multiple
  • 14. Marketing Value To The Middle Market
    • Prepare business documents for Offering Letters & Brochures
    • Develop profile of ideal buyer
    • Outline desired terms and conditions
    • Data gathering process
      • Data Room Documents
      • Legal review
      • Reps & warranties
    Pre-determined Value Marketing Package Financial Performance Organization Business Dynamics Assets & Liabilities
  • 15. Buyer Screening Process
    • BizMart SM
      • Eight thousand Buyers
    • Marketing & Research
      • Mailings
      • 400 thousand Contacts
      • Utilize Outside databases
      • Buyer criteria updates
      • Industry surveys
    • Operation Standards
      • Contract Forms
      • Confidentiality Agreements
      • Offering Brochures & Letters
      • Buyer screening methods
    BizMart SM Buyer Mix
  • 16. Commission Program
    • Commission
      • Sold within 12 months
        • Value up to $10 million : 4.5%
        • Value over $10 million: 1.0%
      • Sold after 12 months
        • Value up to $10 million: 3.0%
        • Value over $10 million: 1.0%
      • Minimum $200 thousand
    • Retainer fee
      • Based on scope - TBD
      • Applied towards commission at closing
  • 17. Who is Chapman Associates?
    • Served middle market clients since 1954.
    • Represent companies worth between $3 million and $100 million.
    • Over 2,300 successful transactions to our credit.
    • Team averaging over 25+ years of experience - CPAs ’, Attorneys, Corporate Executives, Entrepreneurs
    Offices Nationwide

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