1. Lunch and Learn
How to Prepare to Sell or Finance
your Company

2. Presenters
Mike Chadwick
• Investment Banker
• Entrepreneur
• Technology Expert
• Former GoDaddy CTO
• Managing Director, CKS Advisors LLC
Mary Juetten
• Entrepreneur
• Recovering Accountant
• Senior Business Executive
• ASU Law Grad
• Founder & CEO of Traklight
Juliet Peters
• Attorney & Outside In-house Counsel
• In-house, Cold Stone Creamery
• Former Journalist
• Founding Partner Framework Legal
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3. Today’s Agenda
• Why?
• What?
• How?
• Pitfalls
• How to Prepare
• Roadmap to Exit
• Critical Takeaways
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4. The Race Is On
• 9.5 -12 Million businesses Estimated to trade
hands in the next 10-20 years
• 70% of small businesses
• $10 Trillion in value
• 35% of small business owners rely on exit for
retirement

5. Thinking about an Exit or Financing?
• What is your desired goal?
• How do you achieve the highest value?
• Does a financing/partial exit make more sense?
• Do you have the right advisors?
• What will you do post exit?
• Have you handled family concerns?
• What is the ideal timing?
• How do you properly prepare for your exit?
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6. Why do I need to plan?
It can take significant time to:
• Determine the timing and type of exit.
• Decide on the right type of successor.
• Prepare for exit.
– Formal governance and processes
– Modern operations and processes
– Financial reporting and systems
– Proper management team in place
– Focus on increased valuation, based on how your business will
be valued
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7. Why do I need to plan?
• Time to maximize value of the company.
• Achieve greater control of the process and
related stress.
• Minimize tax impact on exit
• Promote the ongoing reputation of business for
remaining stakeholders – no surprises.
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8. Where do I start?
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9. What do I do?
Most critical first task- Select the right team of advisors.
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10. What do I do?
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11. The Selling/Financing Process
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12. Assessing Value
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“The Market”
Strategic
Financial
Operational

13. Personal Stake
of Owners in
Success/Failure
Business
Strategy and
Structure
Sustainable
Competitive
Advantage
Risk Reward
Profile for
Investors
Capital Required
in relation to
plans
SUCCESSFUL
TRANSACTION
Keys to Successful Transactions

14. Common Pitfalls - Foundation
• Management Team
• Outsourcing
• Capital Structure
• Culture
• Strategy and Growth Plans
• Processes and Financial Controls
• Succession Planning
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15. Common Pitfalls - Legal
• Corporate Structure
• Intellectual Property
• Contracts
• Books
• Loan Documents
• Employee Contracts and Agreements
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16. Misconceptions
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• Valuation – Have to remove emotion from the equation.
• Speed – It always takes longer than anticipated.
• Depth of due diligence – If not properly prepared,
diligence is stressful and will reduce the end value of the
transaction.
• There is one path – Every company is a bit different and
it is a complex process. Rely heavily on advisors to
ensure your path is solid.

17. Critical Takeaways
 Start with the end in mind.
 Start properly – entity, contracts, financial
controls, IP, etc.
 Always be prepared for diligence.
 Be meticulous with administration and
governance.
 Hire the right advisors.
 Let go and have fun – remove emotions where
you can.
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18. Questions?
Mike Chadwick
@CKSadvisors
mchadwick@cksadvisors.com
Mary Juetten
@maryjuetten @traklight
mejuetten@traklight.com
Juliet Peters
@frameworklegal
juliet@frameworklegal.com
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