This slide deck presentation by Peter Busacca of Washington BBI discusses business valuation and exit planning. It covers key topics like the components of business value from an appraiser's and buyer's view, the importance of earnings to value, measures of earnings, when professional help is needed, components of an exit plan, and Washington BBI services. The presentation is intended to explain business value and why it is important in under 15 minutes.

1. Index of slides:
Business Value
Presented by Peter Busacca
Washington BBI
06/07/16 Washington BBI The brokers with an end-to-end solution! 1
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

2. Index of slides:
Topic: Business Value
Today’s Challenge:
• In fifteen minutes or less, explain:
• What is business value, and
• Why is value so important?
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 2
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

3. Index of slides:
– Or –
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 3
What’s the big
deal about cash
flow anyway?!
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

4. Index of slides:
Value – Appraiser’s View
Three (main) Components of Value:
1. Market Value Component:
- Sales price of similar firms in the past few years
2. Asset Value Component:
- Acquisition value of comparable assets, or
- Banker looks at the liquidation value of the assets
3. Earnings Value Component:
• Amount & consistency of past earnings
• Predicted value of future earnings
Which of these can you affect and control?
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 4
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

5. Index of slides:
Value – Buyer’s View
The real question is value to whom?
• Who is the PROSPECTIVE BUYER?
• What do they value, and why?
• Different buyers have different needs/values:
• Family member
• Employee or employee group
• Competitor in the area
• Financial buyer (Private Equity Group)
• Strategic buyers pay the best price!
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 5
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

6. Index of slides:
What really matters?
If you want to build long-term value, then Earnings (aka cash flow) is what
matters.
Why?
 Higher cash flow means higher selling price
 Individual buyers purchase a revenue stream
 Corporate buyers purchase strategic assets, but they PAY based on earnings!
 Earnings enables retirement savings and lifestyle
 The more they pay, the better off your spouse will be in retirement!  You, too.
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 6
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

7. Index of slides:
Measures of Earnings
• Net Income
• EBIT
• EBITDA
• SDE
These are all measures of cash flow (earnings).
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 7
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

8. Index of slides:
I may need help if…
• Do you have a written exit strategy?
• Do you know what your firm is worth today?
• Can you describe your firm’s market advantage?
• Do you know when you can retire?
• Or how much $$$ you still need to retire?
• Do you know how to prepare your firm for sale?
• Are you putting out fires or building value?
• Will acquisitions help your firm to grow?
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 8
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

9. Index of slides:
What help do I need?
Get Professional Advice:
• Business Valuator: benchmark annual growth
• Business Broker: exit planning and acquisitions
• Estate Planning Lawyer: plan and protect
• CPA: cash flow analysis, financial & tax planning
• Insurance: personal and business
• Retirement Planning Advisor: savings plus timing
• Business Coach: helps you stay focused
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 9
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

10. Index of slides:
Summary
• Business Value – three components of value
• Build value for strategic buyers!
• Earnings pays for retirement savings and lifestyle
• Get help from experts
• Exit planning and performance coaching helps you to stay
focused on building value!
What are the key components of an exit plan?
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 10
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

11. Index of slides:
Exit Plan Components
1)Vision of the future You & your spouse
2)Business Valuation Business Valuator
3)Retirement Plan ChFC or CFP
4)Insurance Plan Insurance Broker
5)Business Plan:
a) Strategic Marketing Business Consultant
b) Finances CPA
c) Operations Business Coach
d) Acquisitions Business Broker
6)Estate Plan Estate Planning Lawyer
7)Business Exit Business Broker
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 11
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

12. Index of slides:
Washington BBI… who?
Washington BBI is an “outsource” M&A group for firms who do not want to hire a
full-time M&A team.
• Business Acquisitions
• Business Sales
• Business Consulting:
• Performance Analysis
• Strategic Planning and Targeting
• Exit Planning
Most clients are located in the Puget Sound area and have annual revenues
between $2M and $20M
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 12
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info

13. Index of slides:
Contact Info
Peter Busacca Consulting@WashingtonBBI.com
Washington BBI 425/391-8720 www.WashingtonBBI.com
Mailing Address 400 NW Gilman Boulevard, Unit 2208
Issaquah, WA 98027
Office Address: 38579 River Street, Suite 14
Snoqualmie, WA 98065
06/07/16
Washington BBI
The brokers with an end-to-end solution!
Page 13
1. Title
2. Topic
3. What’s the big deal?
4. Appraiser’s View
5. Buyer’s View
6. What really matters?
7. Earnings Measures
8. Getting Help
9. Planning
10. Summary
11. Exit Plan Components
12. Washington BBI Services
13. Contact Info