Australasian EXPO 2010 - Exit Strategies (Murray)

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Exit Strategies - Murray Anderson, Saturday

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Australasian EXPO 2010 - Exit Strategies (Murray)

  1. 1. Exit Strategies Murray Anderson
  2. 2. EXIT STRATEGIES <ul><li>THE PLANNING PROCESS </li></ul><ul><li>WHAT VALUE? </li></ul><ul><li>HOW TO SELL </li></ul><ul><li>WHAT YOU NEED TO DO </li></ul><ul><li>THINGS TO WATCH OUT FOR </li></ul>
  3. 3. THE PLANNING PROCESS <ul><li>You need to PLAN to sell your business </li></ul><ul><li>You need to plan WHEN you want to sell your business </li></ul><ul><li>You need to PREPARE your business for Sale </li></ul><ul><li>You need to RUN your business PROFITABLY </li></ul>** 1 to 3 years ahead **
  4. 4. WHAT VALUE? <ul><li>Multiple of Earnings (Profit) </li></ul><ul><li>- nothing more, nothing less </li></ul><ul><li>Value not (directly) dependent on Assets </li></ul><ul><li>The Business must also be ATTRACTIVE </li></ul><ul><ul><li>Good lease </li></ul></ul><ul><ul><li>Great physical appearance </li></ul></ul><ul><ul><li>Good customer database etc. </li></ul></ul>
  5. 5. HOW TO SELL <ul><li>Use a Business Broker </li></ul><ul><ul><li>They work for YOU </li></ul></ul><ul><ul><li>They know what to do </li></ul></ul><ul><ul><li>They know how to prepare, present and defend the Information Memorandum </li></ul></ul><ul><li>Use UFG Corporate </li></ul><ul><ul><li>Experienced </li></ul></ul><ul><ul><li>Qualified potential buyers </li></ul></ul>
  6. 6. WHAT YOU NEED TO DO <ul><li>Maximise Profitability each year for 3 years </li></ul><ul><li>Increase Profitability each of the three years </li></ul><ul><li>Increase Sales each of the three years </li></ul><ul><li>Make the Lease attractive – relocate if necessary </li></ul>
  7. 7. WHAT YOU NEED TO DO <ul><li>Fix the appearance of the Store – inside and out </li></ul><ul><li>Attend to Procedures, Documentation and Filing </li></ul><ul><li>Clean up your Accounting Software database </li></ul><ul><li>Update Staff Agreements </li></ul><ul><li>Tighten up on Debtors Ageing </li></ul>
  8. 8. THINGS TO WATCH OUT FOR… <ul><li>Any leased equipment or vehicles have to be paid out prior to sale </li></ul><ul><li>Staff Leave Balances (inc Long Service Leave) have to be paid to the Purchaser </li></ul>
  9. 9. THINGS TO WATCH OUT FOR… <ul><li>Allow for: </li></ul><ul><ul><li>Brokers Commission (~5.5%) </li></ul></ul><ul><ul><li>Legal Fees – yours and the Landlord’s (Lease Assignment) </li></ul></ul>

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