GROOMING FOR EXIT PART 2STAGE 1: START NOW The Rudder Group Growth Strategies & Mentor Capital
GROOMING FOR EXITThis presentation is designed to help shareholders addvalue to business through a structured grooming process,gauge the right time to consider an exit, identify mostappropriate exit route, and ensure they achieve best dealfor themselves, their staff, and company itself. The Rudder Group Growth Strategies & Mentor Capital
THREE COMMON STAGES OF THE GROOMING PROCESSNow • Complete an initial business diagnosticWhat • Agree on the ultimate objectivesHow • Implement plan to make things happen The Rudder Group Growth Strategies & Mentor Capital
STAGE 1: FORMULATE THE STRATEGY “NOW”• Start to formulate the strategy 2 – 3 years from desired exit • Allow 6–18 months to get business into shape • Assume 6 months to complete the sale process • Expect 6–12 months of employment with purchaser THE TIME WILL FLY BY! The Rudder Group Growth Strategies & Mentor Capital
STAGE 1: FACTORS AFFECTING VALUATION TODAYBENCHMARK THE VALUATION TODAYAND SET A REALISTIC TARGET VALUE• Current and forecast revenue, profit and cash flow• Visible population of strategic partners, with appetite to buy• Scope of buyer to derive synergistic benefits• Scarcity value and market position• Comparable private and public companies’ valuations The Rudder Group Growth Strategies & Mentor Capital
STAGE 1: ESTABLISHING THE VALUEREVENUES X MULTIPLIER = VALUE OF TECHNOLOGY BUSINESS (MULTIPLIER IS A FUNCTION OF PERCEIVED GROWTH VS. PERCEIVED RISK) • Grooming reduces risk and increases growth potential • Independent valuation provides a comfort level and a reality check • The “true value” is the most attractive offer received from several serious purchasers • Not from just one offer • Highest offer received can be significantly higher than the lowest bid by as much as 50% The Rudder Group Growth Strategies & Mentor Capital
THE GROOMING FOR EXIT SERIES• Part 1: What is Grooming• Part 2 When to Begin• Part 3: What to Do• Part 4: Implementation The Rudder Group Growth Strategies & Mentor Capital
GROWTH STRATEGIES & MENTOR CAPITAL THE RUDDER GROUP ACCELERATES OUR CLIENTS: • Time To Market • Time To Revenue • Time To Positive Cash Flow • Time To Exit Download the PresentationTwitter.com/TheRudderGroupLinkedIn.com/TheRudderGroupFacebook.com/TheRudderGroup www.theruddergroup.com The Rudder Group Growth Strategies & Mentor Capital
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.