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TOP 5 STUMBLING BLOCKS TO
NEGOTIATING A DEAL
TRANSACTIONAL PLANNING FOR THE EXIT STRATEGY
w-group.com
GROUND RULES
Questions
• Attendees are in listen-only mode
• This webinar is being recorded for future on-demand playback
• Your participation represents acknowledgement that we are recording
• Tweet questions & comments to: #WelchGroup
Windows Mac Tablet
w-group.com
Stephan May, MBA
Managing Director
WelchGroup Consulting
smay@w-group.com
@WelchGroup
PRESENTER
w-group.com
SERVICES
Selling Acquiring Financing
Management Buyouts
Performance/Value
Enhancement
Business Valuation
w-group.com
WHAT WE’LL COVER
Transactional Planning
Keeping the deal “on the rails”
• Financials
• Vendors
• Customers
• Deal Expectations
• 3rd Party Advisors
w-group.com
FINANCIALS
Buyers Want Data! Are You Ready To Deliver?
DATA By:
Date (Day/Month/Year) Business Line
Vendors Employees (Sales Reps/Contractors, etc.)
Customers Distribution Channels
Product/Service Line Geographic Region
Ex: “Please provide sales and profit margins by major product and
service offering, by major customer, geographic region, distribution
channel by month-to-month for the last 3 years and projected for
the next three years”
w-group.com
VENDORS
• Most vendor contracts have automatic break-up
clauses in the event of a change in control.
• Deals can be killed or delayed because of a Vendors’
inability to be flexible or timely in transferring
contracts.
Transferring Vendor Contracts Can Be Like
Moving A Ship
w-group.com
CUSTOMERS
You’re Buying Or Selling Cash Flow.
How “Transferable” Are The Clients?
• It is essential to determine if clients can
be transferred to the new party.
• Potential issues that can complicate the
transfer
₋ vendors
₋ contracts
₋ relationships
w-group.com
DEAL EXPECTATION
Have A Game Plan, Don’t “Wing It”
• A thorough comprehension of the deal
• Ability to clearly articulate the opportunity to
the other party
w-group.com
3RD PARTY ADVISORS
Too Many Chefs And
Not Enough Cooks
• Deals can be fun and exciting
• Know when to bring in the right
person at the right time
w-group.com
Stephan May, MBA
Managing Director
WelchGroup Consulting
smay@w-group.com
@WelchGroup
Q&A

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Top 5 Stumbling Blocks to Negotiating A Deal