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How to Prepare to Sell or Finance your Company

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You work hard building up your company to either pass onto family or sell. Maybe you are preparing for your next round of funding. Maximizing your value by discovering all your assets and managing your risk is critical. Hear from experts on how to organize and position yourself for fundraising or exit. Our speakers have been there and done that with fundraising, risk management, executive leadership and outside counsel. Learn tips and tricks from case studies to affordbly spot your risks, cover your assets, and get ready for the next level.

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How to Prepare to Sell or Finance your Company

  1. 1. Lunch and Learn How to Prepare to Sell or Finance your Company
  2. 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 How to Prepare to Sell or Finance your Company 2
  3. 3. Today’s Agenda • Why? • What? • How? • Pitfalls • How to Prepare • Roadmap to Exit • Critical Takeaways How to Prepare to Sell or Finance your Company 3
  4. 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. 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? How to Prepare to Sell or Finance your Company 5
  6. 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 How to Prepare to Sell or Finance your Company 6
  7. 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. How to Prepare to Sell or Finance your Company 7
  8. 8. Where do I start? How to Prepare to Sell or Finance your Company 8
  9. 9. What do I do? Most critical first task- Select the right team of advisors. How to Prepare to Sell or Finance your Company 9
  10. 10. What do I do? How to Prepare to Sell or Finance your Company 10
  11. 11. The Selling/Financing Process How to Prepare to Sell or Finance your Company 11
  12. 12. Assessing Value How to Prepare to Sell or Finance your Company 12 “The Market” Strategic Financial Operational
  13. 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. 14. Common Pitfalls - Foundation • Management Team • Outsourcing • Capital Structure • Culture • Strategy and Growth Plans • Processes and Financial Controls • Succession Planning How to Prepare to Sell or Finance your Company 14
  15. 15. Common Pitfalls - Legal • Corporate Structure • Intellectual Property • Contracts • Books • Loan Documents • Employee Contracts and Agreements How to Prepare to Sell or Finance your Company 15
  16. 16. Misconceptions How to Prepare to Sell or Finance your Company 16 • 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. 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. How to Prepare to Sell or Finance your Company 17
  18. 18. Questions? Mike Chadwick @CKSadvisors mchadwick@cksadvisors.com Mary Juetten @maryjuetten @traklight mejuetten@traklight.com Juliet Peters @frameworklegal juliet@frameworklegal.com How to Prepare to Sell or Finance your Company 18

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