Building a Business for Exit
the prequel…
GRAHAM’S BACKGROUND
• 50+ M&A deals

• Former CEO/MD of Faro, FiveTen, Greythorn, Robert
Walters, TMP, HW Group, Badenoch ...
DAN’S BACKGROUND
• Sold Broadbean to DMGT in 2008

• Founder of cube19, raised c£2m to date
• NXD at Ebsta & previously Ch...
WHAT WE’RE COVERING
•
•
•
•

Operational/tactical advice to build an outstanding business
Key success factors
Real life ex...
LAST YEAR’S TAKEAWAYS
•
•
•
•
•
•
•
•
•
•
•

Getting ready to sell
Choosing the right advisors
Practical tips
Managing the...
What’s at Stake? Fast 50 2009: Where are they now
ANALYSIS OF HOW FAST 50 2009 ENTRANTS ARE PERFORMING IN 2013

Declining ...
The Goal of a Scalable & Replicable Model
4 Key Success Factors

Be clear on what you are
& what you aren’t

Have a model ...
•

Be clear on what you are
& what you aren’t

What type of business do you want (and what do you
have)? Be realistic not ...
•

Do you believe you devote enough time to recruiting
and retaining your own staff?

•

Do you know your cost of replacin...
• Create a culture of fact-based decision making
• Use your data to create a model which isn’t
dependent on you

• Use dat...
The #1 Vanity Metric Harming Your Business
Example 1

Amount left on the table:

£546,000
F***!
The #1 Vanity Metric Harming Your Business
Example 2
Amount left on the table:

£651,000
The #1 Vanity Metric Harming Your Business
Example 3
Amount left on the table:

£1,075,000
• What type of business do you have? (Contract v.
Perm, International etc.)
• Are you in control of cash? For existing AND...
Don’t forget your

due diligence
bundle
Scalable & Replicable

Be clear on what you are
& what you aren’t

Have a model that
delivers consistent
recurring profit
...
QUESTIONS?
Dan mcguire and Graham Palfery-Smith at UK Recruiter Recruitment Conference 2013
Dan mcguire and Graham Palfery-Smith at UK Recruiter Recruitment Conference 2013
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Dan mcguire and Graham Palfery-Smith at UK Recruiter Recruitment Conference 2013

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Planning an Exit.. or just Exit Curious?

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Dan mcguire and Graham Palfery-Smith at UK Recruiter Recruitment Conference 2013

  1. 1. Building a Business for Exit the prequel…
  2. 2. GRAHAM’S BACKGROUND • 50+ M&A deals • Former CEO/MD of Faro, FiveTen, Greythorn, Robert Walters, TMP, HW Group, Badenoch & Clark • Sits on a number of boards including Brightsparks, Coppergate, CXC, cube19, Ebsta, Evolution, Executives in Africa, IMS, JCW, Profiles and Ventura @grahampa
  3. 3. DAN’S BACKGROUND • Sold Broadbean to DMGT in 2008 • Founder of cube19, raised c£2m to date • NXD at Ebsta & previously Chairman at Recruitment Juice, involved in fund-raises for both • Investor and M&A advisor for several technology businesses @dan_mcg
  4. 4. WHAT WE’RE COVERING • • • • Operational/tactical advice to build an outstanding business Key success factors Real life examples to improve profitability How to get a shot at an extra £20k in fees per recruiter by doing less work WHAT WE AREN’T COVERING • Most of what we covered last year
  5. 5. LAST YEAR’S TAKEAWAYS • • • • • • • • • • • Getting ready to sell Choosing the right advisors Practical tips Managing the roller-coaster Avoiding potholes Have a plan – be realistic not idealistic Earnouts & succession planning Warranties, Indemnities and Disclosures Deal breakers Prepare your due diligence What a ‘successful’ exit looks like
  6. 6. What’s at Stake? Fast 50 2009: Where are they now ANALYSIS OF HOW FAST 50 2009 ENTRANTS ARE PERFORMING IN 2013 Declining Performance 26% Administration 6% Distressed M&A Event 4% Successful M&A Event 16% Continued Growth 48%
  7. 7. The Goal of a Scalable & Replicable Model 4 Key Success Factors Be clear on what you are & what you aren’t Have a model that delivers consistent recurring profit Hire good people & keep them Understand & measure what really drives your business
  8. 8. • Be clear on what you are & what you aren’t What type of business do you want (and what do you have)? Be realistic not idealistic • What markets do you specialise in? Be specific • Do you & the rest of the management team have clearly defined roles and responsibilities? Make the tough decisions now • If you have partners do you always share decision making? It could be holding you back • Does your decision making relate to your company strategy & end goal? Are you aligned & will it make…
  9. 9. • Do you believe you devote enough time to recruiting and retaining your own staff? • Do you know your cost of replacing staff? Lost revenue, fees, training etc • How are your staff motivated and incentivised? Is it in line with the company strategy & objectives? • How do you know your staff are happy? When did you last check? • NXD’s? Set the bar high Hire good people & keep them
  10. 10. • Create a culture of fact-based decision making • Use your data to create a model which isn’t dependent on you • Use data to gain a competitive edge (examples coming up…) • Model your star performers (the outlier myth) • Create the Playbook Understand & measure what really drives your business
  11. 11. The #1 Vanity Metric Harming Your Business Example 1 Amount left on the table: £546,000
  12. 12. F***!
  13. 13. The #1 Vanity Metric Harming Your Business Example 2 Amount left on the table: £651,000
  14. 14. The #1 Vanity Metric Harming Your Business Example 3 Amount left on the table: £1,075,000
  15. 15. • What type of business do you have? (Contract v. Perm, International etc.) • Are you in control of cash? For existing AND growing? Have a model that delivers consistent recurring profit • Are you keeping your best staff? • Business Development strategy? • Tax & compliance?
  16. 16. Don’t forget your due diligence bundle
  17. 17. Scalable & Replicable Be clear on what you are & what you aren’t Have a model that delivers consistent recurring profit Hire good people & keep them Understand & measure what really drives your business
  18. 18. QUESTIONS?

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