Thanks everyone who attended this Sysenex Thought Leadership Talk. We enjoyed the discussion and feedback from the audience regarding this topic. A session for business owners looking to successfully sell their company. As a business owner who wants to sell your company, the odds are against you. Only 20% to 25% of businesses sell successfully. Selling a business is not like selling a house. There are many obstacles to a successful business sale, so it takes a lot of planning to identify the obstacles faced by business owners, and overcome or minimize the effect of the obstacles. If you are counting on the sale of your business for your retirement funds, monetizing the sweat equity you’ve expended in developing and running your business, or need to make sure your business is sellable, you don’t want to miss this session. About Sysenex We work with mid-market organizations that want to grow through M&A. We work with companies in technology, software, pharma, medical devices and product centric companies. We assist sellers in maximizing their valuation before sale. We assist buyers in identifying targets, performing operational due diligence, and integration plan development and implementation. Ask us how we can help you successfully sell your business. Contact: solutions@sysenex.com Visit: www.sysenex.com Copyright © Sysenex 2017

1. Steps To Successfully
Sell Your Business
www.sysenex.com

3. Use: #ExitStrategy
Follow: @Sysenex @hmdelcastillo
Tweet

4. Special Thanks

5. of businesses sell successfully
20-25%
Multiple Sources

6. Steps To Successfully Sell Your Business

8. –Your view
–Discussions
–Your goals
–Market conditions
Assess business situation

9. Analyze business strategy
Sellers can achieve a 71% increase in sales price
by measuring key factors to ensure their business is built
to sell
Source: Built to Sell
$$$$$$$

10. Analyze business strategy
If you want a higher business value, analyze and address
business gaps
Current Situation
Gap
Vision

11. Identify business gaps
“harvest wealth locked in the business.” (Forbes, 2/5/2017)
How?
Examine company areas

12. Determine current valuation
– Factors beyond your control
– Factors under your control

14. Secure experienced team
• Advisor
• Financier or banker
• Lawyer
• Accountant
• Wealth manager
• Business broker

15. Perform financial planning
–After-tax cash resulting from sale
–How it fits into seller’s financial
plan

16. Fill business gaps
–Financial
–Growth potential/scalability
–Overdependence
–Recurring revenue
–Unique value proposition
–Customer satisfaction/retention

18. Plan approach
Buyer: Strategic or financial?
Are you staying with the company?
Is now is the right time to sell your business?

19. Structure transaction
Negotiated Sale Targeted or
Full Auction

20. Identify potential buyers
–Multiple buyers
–Pitch book - professional marketing
materials
–Buyers can be competitors,
customers, strategic buyers, private
equity firms….

21. Establish data room
– Legal, financial business documents
– present seller in the most positive way
– Have your documentation in order

22. Review sales (data room) documents
– Team reviews before they are released
– Revise and update as needed

24. Review buyer info request
–All parties sign a CI – Confidentiality Agreement
–Respond promptly

25. Review LOI (Letter of Intent)
–After first round of negotiation
is completed
–Outlines deal fundamentals
Letter of Intent
Price
Earnout
Key employees
Due diligence
Sh. Approvals
Exclusivity
Expenses
C. Conditions…

26. Draft acquisition agreement
–After the LOI is signed
–Negotiations continue
• Fulfill information requests
- Respond promptly

27. Perform due diligence
–The paper check
–Other areas
–Data room+
• Make personnel available

29. Negotiate offer, terms & contract
– As negotiations progress, the contract will be firmed up
– Some major areas
– Price/consideration
– Seller and buyer representations and warranties
– Employee and benefit issues
– Termination
• Manage close and post close conditions

30. Participate in integration planning
– People, systems and data are merged or separated
– Can require substantial time, personnel and money
– Careful planning needed to avoid unpleasant surprises

31. Steps To Successfully Sell Your business

32. We help sellers realize their business objectives.
Set up a free initial consultation.
For more information, contact
Laurie Wiggins
www.sysenex.com
wiggins@sysenex.com