Grooming for Exit, part 3

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What specific steps to take when grooming your business to ensure a successful exit.

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Grooming for Exit, part 3

  1. 1. GROOMING FOR EXIT PART 3STAGE 2: WHAT TO DO The Rudder Group Growth Strategies & Mentor Capital
  2. 2. 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
  3. 3. 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
  4. 4. STAGE 2: WHAT TO DO?ESSENTIALLY, THE BUSINESS WILL CREATE A LIST OF WHAT ITBELIEVES TO BE ACHIEVABLE TARGETS THAT BECOMES THEGROOMING STRATEGY OF THE BUSINESS PRIOR TO EXIT. The Rudder Group Growth Strategies & Mentor Capital
  5. 5. STAGE 2: FOCUS ON VALUE DRIVERS• Clear upward trend in revenues and profits• Tightly controlled business and cost reduction implementation• Win a wide range of “attractive” customers• Product or service is marketable going forward• Pipeline of innovative new offerings• Build the brand image• Management ready to face new challenges with new owners• Company’s documents and finances in order The Rudder Group Growth Strategies & Mentor Capital
  6. 6. STAGE 2: COMMON ISSUES TO ADDRESS WHEN GROOMING Common Issues Actions to Mitigate Lack of Vision/Direction  Establish strong leadership team Management not pulling together  Develop clear plan of action Lots of good ideas; no one following through  Team held accountable for delivering objectives Revenues growing with no bottom line benefit  Optimize costs to support growth objectivesSpecialized skills needed without adding full time resource costs  Identify consulting partners to provide specific short term skills Sales message is unclear (Rolls Royce for a Ford Focus price)  Validate price point for known (and perceived) market value The Rudder Group Growth Strategies & Mentor Capital
  7. 7. STAGE 2: FUTURE PROSPECTS OF THE BUSINESSMUST BE ABLE TO SELL “BLUE SKY” TO NEW OWNERS• Identify immediate and medium term prospects and sell them as benefits • Growth in products or services • Exploiting a new product range • New geographical markets • New supporting legislationImportant to realize upside in some ofthese areas by exit to substantiate claimsof growth The Rudder Group Growth Strategies & Mentor Capital
  8. 8. 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
  9. 9. GROWTH STRATEGIES & MENTOR CAPITAL THE RUDDER GROUP ACCELERATES OUR CLIENTS: • Time To Market • Time To Revenue • Time To Positive Cash Flow • Time To ExitTwitter.com/TheRudderGroupLinkedIn.com/TheRudderGroupFacebook.com/TheRudderGroup www.theruddergroup.com The Rudder Group Growth Strategies & Mentor Capital

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