Realising Business Value


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How To Realise The Maximum Value From Your Business

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  • Welcome guests and thank Herts Chamber for the opportunity. Ivor Kellock briefly introduces himself and the panel of Anita Wynne and Nicholas Fraser. Suggest just name, and Director of... Which focuses on...
  • Realising Business Value

    1. 1. Exit Strategy Planning September 2008 Realising the Full Value of Your Business Realising Business Value
    2. 2. Agenda <ul><li>Why have an exit strategy? </li></ul><ul><li>What is getting in your way? </li></ul><ul><li>What is involved? </li></ul><ul><li>Timescales </li></ul><ul><li>Benefits of planning ahead </li></ul>Realising Business Value
    3. 3. What is value? Courtesy <ul><li>relative worth , merit, or importance: the value of a college education; the value of a queen in chess. </li></ul><ul><li>monetary or material worth , as in commerce or trade: This piece of land has greatly increased in value. </li></ul><ul><li>the worth of something in terms of the amount of other things for which it can be exchanged or in terms of some medium of exchange. </li></ul><ul><li>equivalent worth or return in money, material, services, etc.: to give value for value received. </li></ul><ul><li>estimated or assigned worth ; valuation: a painting with a current value of £500,000. </li></ul><ul><li>denomination , as of a monetary issue or a postage stamp. </li></ul><ul><li>values, Sociology . the ideals, customs, institutions, etc., of a society toward which the people of the group have an affective regard. These values may be positive, as cleanliness, freedom, or education, or negative, as cruelty, crime, or blasphemy. </li></ul><ul><li>to calculate or reckon the monetary value of; give a specified material or financial value to; assess; appraise: to value their assets. </li></ul><ul><li>to consider with respect to worth, excellence, usefulness, or importance. </li></ul>
    4. 4. Why have an exit strategy? <ul><li>Money </li></ul><ul><ul><li>security </li></ul></ul><ul><ul><li>family </li></ul></ul><ul><li>Recognition </li></ul><ul><li>Freedom </li></ul><ul><ul><li>Control decisions to best exploit your skills </li></ul></ul><ul><ul><li>work/life balance </li></ul></ul><ul><li>REALISE YOUR GOALS </li></ul>Realising Business Value
    5. 5. What is holding you back? <ul><li>Readiness of you </li></ul><ul><ul><li>Loss of control </li></ul></ul><ul><ul><li>Loss of identity </li></ul></ul><ul><li>Readiness of rest of shareholders </li></ul><ul><li>Logistical issues </li></ul><ul><ul><li>How do you sell? </li></ul></ul><ul><ul><li>Impact of competitors </li></ul></ul><ul><ul><li>Impact on staff </li></ul></ul>Realising Business Value
    6. 6. What is holding you back? (cont’d...) <ul><li>Unrealistic views </li></ul><ul><ul><li>Company’s value </li></ul></ul><ul><ul><li>Company’s prospects </li></ul></ul><ul><li>Succession management </li></ul><ul><ul><li>Parental issues </li></ul></ul><ul><ul><li>What do you do next? </li></ul></ul><ul><li>  </li></ul>Realising Business Value
    7. 7. Does exit seem like an impossibility? Unrealistic Expectations Poor Pension Arrangements Good Profits Fear of Unknown No successors in place Ambitions No personal plans Pride/Identity Responsibility for Staff Trapped by the business
    8. 8. Key drivers? <ul><li>HSBC survey – 2006/7 </li></ul><ul><li>Family is the key driver (70%) work (6%) – defines </li></ul><ul><li>who we are – conflict between time at home/work? </li></ul><ul><li>Age 70 is the new 50 - change in our attitudes, needs & </li></ul><ul><li>Life Expectancy (increased by 30+ years since 1900, 8+ years since 1970’s) </li></ul>
    9. 9. Who’s in old peoples homes? <ul><li>4% of people aged 65-69 </li></ul><ul><li>7% of those aged 70-74 live in sheltered accommodation </li></ul><ul><li>Age 85 1 in 5 chance (20%) </li></ul><ul><li>Age 75 – 84 4% chance long stay hospital </li></ul><ul><li>>84 19% chance of long stay hospital </li></ul><ul><li>The rest are either living at home on their own or living with family…….. </li></ul><ul><li>How will you manage your business and care for elderly relatives? </li></ul><ul><li>* Source The Hartford May 08 </li></ul>
    10. 10. What is involved? Full review and guidance on Realising Business Value You & Your Company People Personal & Corporate Finances Business
    11. 11. Review Business Realising Business Value Shareholder's Objectives Business Plan Competition Market Company Key Issues (SWOT) Detailed Action Plan
    12. 12. <ul><li>Action without vision is only a way of passing </li></ul><ul><li>the time </li></ul><ul><li>Vision without action is only a dream </li></ul><ul><li>Vision with action can change the world </li></ul>Realising Business Value Nelson Mandela
    13. 13. Review People Company Realising Business Value Management Development Succession Planning Basics (employment law) Engagement Communication Performance Management Employee Well-Being Retention ‘ Employer’ Brand Compensation & Benefits
    14. 14. <ul><li>All the world's a stage, And all the men and women merely players; They have their exits and their entrances; And one man in his time plays many parts, His acts being seven ages. At first the infant, Infancy Mewling and puking in the nurse's arms; Then the whining school-boy, with his satchel Childhood And shining morning face, creeping like snail Unwillingly to school. And then the lover, Adolescence Sighing like furnace, with a woeful ballad Made to his mistress' eyebrow. Then a soldier, Young adult Full of strange oaths, and bearded like the pard, Jealous in honour, sudden and quick in quarrel, Seeking the bubble reputation Even in the cannon's mouth. And then the justice, Adult - Maturity In fair round belly with good capon lin'd, With eyes severe and beard of formal cut, Full of wise saws and modern instances; And so he plays his part. The sixth age shifts Old age </li></ul><ul><li>Into the lean and slipper'd pantaloon, With spectacles on nose and pouch on side; His youthful hose, well sav'd, a world too wide For his shrunk shank; and his big manly voice, Turning again toward childish treble, pipes And whistles in his sound. Last scene of all, The End That ends this strange eventful history, Is second childishness and mere oblivion; Sans teeth, sans eyes, sans taste, sans everything. </li></ul>Realising Business Value Shakespeare’s Seven Ages Of Man - As You Like It – Soliloquy - Act 2 Sc 7 Jacques
    15. 15. A few facts……. <ul><li>UK state pension age - 65 to 68 2024 and 2046 </li></ul><ul><li>£540k today provides £1,500 pm net of tax </li></ul><ul><li>(RPI indexed) for 65 yr old couple** </li></ul><ul><li>At 60 a man can expect to live for another 20.2 yrs and a woman another 23.4 yrs </li></ul><ul><li>** Source FSA Money Made Clear website May 2008 </li></ul>
    16. 16. Review Personal & Corporate Finances Company Realising Business Value <ul><li>Complete Integrated Financial Planning </li></ul><ul><li>(Gap Analysis) </li></ul><ul><li>Family </li></ul><ul><li>Corporate </li></ul>5 Key Elements <ul><li>Benefits </li></ul><ul><li>Director </li></ul><ul><li>Employees </li></ul>Treasury Management Banking relationships Tax Planning Share Structuring Corporate Will Guaranteed Market for shares Key People Locked in Protected
    17. 17. Timescales <ul><li>Life and Business </li></ul><ul><li>Business </li></ul><ul><li>3 years ahead of sale begin exit plan strategy (may need 5 years if complicated) </li></ul><ul><li>1 year approx. to complete sale process (if choose) </li></ul><ul><ul><li>Identify potential buyers </li></ul></ul><ul><ul><li>Due diligence (buyer on you and vice versa) </li></ul></ul>Realising Business Value
    18. 18. Benefits of Planning <ul><li>Increase your company’s value </li></ul><ul><ul><li>Lower liabilities and reduce issues </li></ul></ul><ul><ul><li>Attract more buyers </li></ul></ul><ul><ul><li>Break ceiling price? </li></ul></ul><ul><ul><li>Faster sale </li></ul></ul><ul><ul><li>Limits broken sale negotiations </li></ul></ul><ul><ul><li>Keeps you focussed </li></ul></ul><ul><ul><li>CONFIDENCE YOU MEET YOUR GOALS </li></ul></ul>Realising Business Value
    19. 19. Summary <ul><li>Business </li></ul><ul><ul><li>People </li></ul></ul><ul><ul><li>Personal & Corporate Finances </li></ul></ul><ul><ul><li>A holistic approach working to your strengths </li></ul></ul><ul><li>Realising Business Value </li></ul><ul><ul><li>SM Mentors </li></ul></ul><ul><ul><li>beststart HUMAN RESOURCES </li></ul></ul><ul><ul><li>Kellock Wealth Management </li></ul></ul>Realising Business Value
    20. 20. Regulatory Statement <ul><li>This presentation should not be construed or taken as advice. General principals have been considered. Your individual circumstances should be taken into account before any action is taken. </li></ul><ul><li>Kellock Wealth Management is a trading style of Trinity House Financial Planning Ltd: </li></ul><ul><li>Highland Suite </li></ul><ul><li>Great Hollanden Business Centre </li></ul><ul><li>Mill Lane, Underriver </li></ul><ul><li>Sevenoaks </li></ul><ul><li>Kent, TN15 0SQ </li></ul><ul><li>which is authorised & regulated by the Financial Services Authority 439073 </li></ul><ul><li>Registered in England 4740530         |         Registered address as above </li></ul>Realising Business Value