Building Your Business and Preparing for an Acquisition And how to do it in tough times… Draft presentation for EO breakfast series By Mark Friedler Worlds and Games LLC, EO San Francisco [email_address]

How You Grow in Tough Times Strengthen your business Focus: the attracting force for buyers Prepare NOW for an acquisition The DOs and DON’Ts What do you want next and how to get it

Strengthen your business

Focus: the attracting force for buyers

Prepare NOW for an acquisition

The DOs and DON’Ts

What do you want next and how to get it

Who Is This Guy?

Mark Friedler History, chapter 1 Started first Cookie Store Chain in Sweden Sold to Restaurant Chain

Started first Cookie Store Chain in Sweden

Sold to Restaurant Chain

Mark Friedler History, chapter 2 Started VCast, got patent, sold to Verizon

Started VCast, got patent, sold to Verizon

Mark Friedler History, chapter 3 Started Gigex, acquired 3 companies during DotBomb – GameDaily to top 3 site. Sold to AOL

Started Gigex, acquired 3 companies during DotBomb – GameDaily to top 3 site. Sold to AOL

How to Get to the Altar? Acquirers Love Businesses That Are: Add value to buyer Growing, cash flow, profitable Have great people Focused and unique

Add value to buyer

Growing, cash flow, profitable

Have great people

Focused and unique

Do You Have the Team You Need? Hire SLOWLY, fire quickly Great people drive your business, bad people kill it

Stand Out with Your Growth Story Be transparent Increase Margins, show your efficiency Cash flow is king - not EBITA, etc Are your Forecasts accurate?

Be transparent

Increase Margins, show your efficiency

Cash flow is king - not EBITA, etc

Are your Forecasts accurate?

Make The Buyer Look Smart Show fast entrance into a new business - you are expert Deliver the “Promise of pot of gold at end of the rainbow”

Strengthen Your Business Now – AIM! Repeat! M easure – KPIs, ROI, your key numbers I nvest – make real growth plans A ccept: Plans that fit in your current sandbox

Repeat!

M easure – KPIs, ROI, your key numbers

I nvest – make real growth plans

A ccept: Plans that fit in your current sandbox

A Secret They Won’t Tell You They buy you - then the business Be nice, open, curious, helpful and positive

Get Ready to Jump In Negotiate Key elements at the start of the process Find a few senior champions for you Contract length, non-compete, severance Compensation, bonus, earn-outs, stock Roles, reporting, goals, time, meetings

Find a few senior champions for you

Contract length, non-compete, severance

Compensation, bonus, earn-outs, stock

Roles, reporting, goals, time, meetings

Be Honest: What Do You Want Next?

Case Study: Your Business and Q&A Repeat! M easure – KPIs, ROI, your key dashboard I nvest – make growth plan on what is real A ccept and A dmit: Plan for your sandbox

Repeat!

M easure – KPIs, ROI, your key dashboard

I nvest – make growth plan on what is real

A ccept and A dmit: Plan for your sandbox

Take Aways for your business today Do: Review your contracts and clean up messes Financials: Get a great accountant Go to a trade show Write one article/blog in a trade journal Start Promoting yourself DON’T Don’t hire for show No long term leases Avoid “vanity” deals that have bad margin No litigation, settle! Don’t tell friend about a pending deal Be dishonest

Do:

Review your contracts and clean up messes

Financials: Get a great accountant

Go to a trade show

Write one article/blog in a trade journal

Start Promoting yourself

DON’T

Don’t hire for show

No long term leases

Avoid “vanity” deals that have bad margin

No litigation, settle!

Don’t tell friend about a pending deal

Be dishonest

Now Get Ready! Thank you By Mark Friedler Your Goto Entrepreneur [email_address]