Even though the M&A market is buoyant, many deals are not getting done because management teams are not ready and haven't prepared themselves or their business properly. Find out how to prepare your business early in order to get the deal you want.

1. STRATEGIC ADVISORY
& DEAL SUPPORT
SKYPANTHER –
CAPITAL
small business for
exit
the art of preparing your
STRATEGIC ADVISORY
& DEAL SUPPORT
SKYPANTHER CAPITAL
WWW.SKYPANTHERCAPITAL.

3. STRATEGIC ADVISORY
& DEAL SUPPORT
SKYPANTHER –
CAPITAL
in
context
…if you've got a small business, you're gonna wanna see this…
1
“ ”

4. STRATEGIC ADVISORY
& DEAL SUPPORT
SKYPANTHER –
CAPITAL
…small is beautiful

5. For small
businesses with
revenues
between $1.5-
$15m, or £1-
£10m
You need to
know how to
exit when the
time is right
Despite a
buoyant M&A
market(1)…
…many deal
processes still
stall and fail to
complete
The main
reason is small
businesses are
entering the
process blind
Advisors can
try to get your
deal done but
poor input =
poor output
small is beautiful
(1) http://www.forbes.com/sites/mattporzio/2015/07/31/2015-ma-volume-will-hit-an-all-time-high-is-this-a-bubble/

6. STRATEGIC ADVISORY
& DEAL SUPPORT
SKYPANTHER –
CAPITAL
small is beautiful
Entrepreneurs need to be
much more prepared before
appointing advisors if you
want a successful exit

7. ask yourselves...
Where do you see your business in 1 year from now?
Where do you see your business in 3/5/10 years from now?
Where do you see yourself in 1 year from now?
Where do you see yourself in 3/5/10 years from now?

8. How do you see
your relationship
with your business
evolving in these
timeframes?
Working
fewer hours?
Having a
different role?
Exiting the
business
completely?
An opportunity to do something new?
Exiting the business
partially?

9. ask yourself (some more!)...
What would you do if
you received an
unsolicited approach for
your business today?
• What would you say?
• Is this the opportunity you've been waiting for
• What do you think about their valuation
expectations?
• What terms do you want?
• Are you ready for due diligence?

10. why now is
a good time
to sell

11. There is a 2 to 3 year
window for business
owners to complete a
transaction in a very
positive environment
Because the market is
frothy(2)
Because if you are a
"baby boomer" this
may be your last real
chance of exiting
Because if your deal
process fell over
during the recession,
now is the time to
make your move
Buyers have capital to
deploy and are
actively on the lookout
for quality businesses
why now is
a good time
to sell
(2) http://companyweek.com/articles/on-finance-the-ma-market-is-frothy-if-you-can-get-there

12. 2
…if you want peace, prepare for war…
early
preparation
“ ”

13. time is money
Preparation does not start when
you appoint an advisor
The preparation starts now
irrespective of when you want to sell
The earlier you start, the more
value you are creating in your
business

14. luck favours
the
prepared

15. Creates
opportunities now
§ strengthens your team
§ consolidates operations
§ allows you to operate
more effectively
Luck favours the prepared
Puts you ahead of
the competition
§ raises your profile
§ positions you better with
potential buyers
§ allows you to start
building ‘good will’
Proactive not reactive
§ allows you to respond to
opportunistic approaches
§ shows you at your best
§ allows you to know what to
expect, what to say, and
what not to say

16. Operationally
§ financials need to be clear and tell a compelling story
§ the team needs to be kick-ass with no gaps
Identify potential buyers
§ what do you do well?
§ ideal buyers are those who do not do 'it' well or want to start doing 'it' well
Positioning
§ get buyers to notice you
§ raise your industry profile
§ build the right relationships and create the right first impressions
§ "...and the Oscar goes to..." - win awards in your sector
Deal objectives
§ type of exit, to who, at what price
§ preliminary valuation
what to
prepare

17. STRATEGIC ADVISORY
& DEAL SUPPORT
SKYPANTHER –
CAPITAL
…how successful deals are meant to be done…
3
the deal
process
“ ”

18. § Set your goals
§ when to exit and what type?
§ how much and to who?
§ what kind of deal does not work?
§ Confidentiality
§ Who knows internally?
§ No-one should know externally
§ Work you do vs. advisor/coach
§ You prepare vs. advisor manages
§ When to hire an advisor?
§ How to hire the right advisor?
§ An advisor for all budgets
§ Business as usual
§ How will you manage the company whilst liaising on the deal?
§ Getting information in a timely and accurate manner
§ Additional support
ground
rules

19. Preparatory material –
"looking premium sells for premium"
Buyers lists –
"targeted, warm leads if possible"
Marketing material –
"tease a little"
Meetings –
"the best first impression"
Due diligence –
"no skeletons"
Negotiations –
"firm but fair"
Close –
"success, not another failed statistic"
work flow

20. work flow
Close - success, not another failed statistic
“ ”

21. Necessary to weed the window-shoppers early
§ Some parties will want to come and see what you are up to
and gather market intelligence
§ Identify the time-wasters early on
The process needs to maintain momentum
§ Deal fatigue for all parties is a big reason deals fall-over
§ A good advisor will manage the project to
ensure there is momentum
Avoid confrontation during negotiations
§ Foster an environment of collaboration with
potential buyers
§ A good advisor will play “bad cop” on your behalf
to get you what is required whilst protecting you
be aware

22. 4
how we can
help
“…I'll be your wingman anytime…”

23. § Assisting you articulate and perfect your
story
§ Providing timely deal strategy
§ Formulating and helping implement an
exit strategy
§ Coaching / advising
you through a
potentially complex
and emotional journey
§ Ensuring a high-level
of confidentiality at
all times
strategic
advisory

24. the
grunt
work

25. Developing the Teaser
(to introduce the
opportunity to potential
purchasers)
Developing an
Information
Memorandum
Valuation analysis to
advise you of fair
valuation expectations
Financial modeling to
map out a deal that
works for you
Buyer research to
invite only relevant
buyers to the party
Setting up and
orchestrating
meetings with buyers
the grunt work

26. 0
Creating competitive
tension at all times
Maintaining deal
momentum
Securing multiple
offers of interest
Preparing and
managing you for due
diligence
Negotiations Close
executing to
close the deal

27. by doing this:
• Underlining the strategic value in
your company
• Demonstrating support for deal
terms and valuation
• Identifying relevant potential
buyers for your business
• Managing a tight process
adding value
where it matters
i can deliver this:
• Improve odds of a successful
completion
• Decrease burden on management
• Protect the CEO and senior team
• Maximize price and deliver
attractive terms

28. your exit coach
Provide an on-demand
service delivering advice,
strategy and coaching
whilst you go through a
process or prepare your
business for one
your deal lead
A fully engaged role working
closely with management
from beginning to end to
deliver the deal you want
business
model
your advisor
The above plus hand-on
involvement helping to
prepare materials and
some participation in
meetings

29. Managing Director at
SkyPanther Capital
Tallat Mahmood, based in
London, UK
10 years of investment
banking and corporate
finance experience
An entrepreneur myself
and owner of a small
business
Have been featured in
Forbes, Bplans,
TechCrunch and
Entrepreneur, amongst
others
about me
Only take on a small
number of clients at a
time and provide a
personalised approach,
coupled with market
specialism

30. tallat mahmood
managing director
www.skypanthercapital.com
tallat.mahmood@skypanthercapital.com
connect with me on linkedIn
make
the call

31. disclaimerThe information contained in this presentation is provided with the participants
understanding that this presentation should not be used as a financial
advertisement tool, nor as a substitute for consulting a financial advisor,
accountant, lawyer or other such professional in the applicable jurisdiction.
The author expressly disclaims liability for any damages, loss, or risk incurred as a
direct or indirect consequence from the use and application of any contact herein.