How IIB Associates Can Help Clients Exit & Earn Significant Fees In The Process

1. Comments
Cmd/u
DR D
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The refreshingly different approach

2. The refreshingly different approach to selling your client’s business
Welcome to this webinar with
David Oliver;
How IIB Associates Can Help Clients Exit
& Earn Significant Fees In The Process
For further details contact david.oliver@bcmscorporate.com

3. The refreshingly different approach to selling your client’s business
Reasons when & why your client can be
encouraged to consider exit – we will provide
collateral
People usually sell for 1 of 6 reasons
1. Change of lifestyle/retirement
2. Time for family, self, friends
3. Entrepreneurs vs managers
4. Business life-cycle, growth needs investment
5. Bank & invest
6. Been approached

4. The refreshingly different approach to selling your client’s business
The refreshingly different approach to selling your client’s business
Ensuring your client gets the best deal
1. Never go to market with a value attached
2. Don’t rely on traditional methods – multiples of
profit – find strategically motivated buyers
3. Choice of buyer critical to price, terms & speed so
actively sell the business average UK number is 12!
& is woefully inadequate
4. Never sell the past, only the future
5. Always look outside sector and outside of country

5. Realise the value
The challenge IIB associates face
No M&A
• Lose clients
• Lose revenue
• Lose opportunities
• Client less likely to sell for maximum value

6. Realise the value
The challenge IIB associates face
Some M&A
• Lose out on some sectors
• Cant source enough potential acquirers for all
• Can’t do it all for every client
• Enterprise value not optimised
NB Large or small no-one has the hundreds of staff BCMS
have for desk research & subsequent Prospect generation

7. Realise the value
It needs a specially constructed
partnership and the the potential is great
Earn significant fees p.a.
No on-cost. There is no cost & no obligation at any stage
Give clients a great opportunity to sell
Give clients the greatest opportunity to achieve
maximum value
Opens up a new and even better future with the
the client who sells.

8. Realise the value
Why partner with BCMS Corporate?
• Well established – 1987 – working with 1000 firms
• Market leader - sell a UK private company every 4
working days typically 40% above traditional valuations
• Negotiative dialogue with 50,000 co’s / annum
• Unique data resource – 150 million companies
• Large and highly skilled team of 250+ staff
• Offices worldwide

9. Realise the value
Strong Global Presence
Worldwide Office
9
Locations

10. The refreshingly different approach to selling your client’s business
BCMS Corporate partners
Also endorsed by;
Coutts bank
Deutsche bank
Accountancy Age
AVN
Peak Performance
Insight
& others…..

11. Realise the value
BCMS Corporate
• Established 1987
• Sell more private companies
Source: Experian Advisor League Tables

12. The refreshingly different approach to selling your client’s business
Potential revenue working together:
• Revenue from the referral (3.4k + 10% of success fee, £2.5k minimum, max so far £100k)
• Revenue from DD (£2k)*
• Tax consultancy (£10k-150k) *
• Passive revenue trail from funds under management (£4k p.a. average after 2 years, if
applicable or commissions from your IFA pal! Own IFA your commission .5% more?*
• Revenue from outgoing client’s future investment activity (2 in 5 will rejoin the market)
• 2 in 5 will have pension management income potential*
NB You don’t lose the client!!! Potential total;
Min 5.9k + £2k + £10k + £43k +£10k = £70.5k
Max £103k + £2k + £150k + £166k+ £100k = £418.0k.
For non accountants & IFA’s team up with other IIB Associates & share revenue.
This is one of the great benefits of being part of the IIB; you’re able to offer clients a full solution

13. Realise the value
The potential £low £high
Referral + share of success 5.5k 103k
Due diligence* 2k 2k
Tax scheme (£300k/£4.5m)* 10k 150k
Funds under management (£2m/£16.6m)* 2k 17K
Pension or new start* 10k 100k
29.5k £372.k
Non accountants & IFA’s team up with other IIB Associates & share revenue.
This is one of the great benefits of being part of the IIB; you’re able to offer clients a full solution
WM @1% funds invested Tax @ £34k per £1m

14. Realise the value
£low £high
£29.5 £372.k
The potential
Illustration;
An accountant with average annual fee of £3k
Then in one year with one successful referral achieve 10X
If the average life time value is 7 years
Client’s lifetime fees are £21k
Achieve 40% more than lifetime value in one year + annual
ongoing
IIB associates we can do our own maths here to calculate potential impact in
our
specific situation
WM @1% funds invested Tax @ £34k per £1m
NB You don’t lose the client!!!

15. The refreshingly different approach to selling your client’s business
BCMS stages of finding a buyer
Free one-to-one with senior BCMS consultant. Once commissioned:
• Company & Product Brief
• Desk Research
• Prospect Generation
• Qualification
• Concluding the Deal

16. The refreshingly different approach to selling your client’s business
1. The Brief – developed purchaser profiling
Products
Geography Clients
Financial
etc.

17. 2. Desk Research
two important numbers
12 or
• Dedicated teams of 35 full time researchers in
230
UK, Europe, US & China
• BCMS DB – 80,000 conversations p.a.
• Worldwide data resource of 150+ million
companies is used to identify ALL possible
strategic buyers
• International search wherever possible
• NB. China $1trillion

18. 3. Prospect Generation
• Credibility established
• Benefits clearly stated
• Unusually high levels of confidentiality
maintained
• 2-3000 telephone calls made here to MD’s
and FD’s
• Over 80% of all deals final buyer not looking
to acquire

19. The refreshingly different approach to selling your client’s business
4. Qualification
We look for:
• The ability to invest
• Compatible customers
• Strategic synergies
• More than one buyer
Both comprehensive & uncompromising

20. The refreshingly different approach to selling your client’s business
230
25
12 or
6-12
Exploratory
Meetings
4-6
230? Price
Discussions 3

21. The refreshingly different approach to selling your client’s business
230
25
230 = choice 6-12
That choice that enables Exploratory
BCMS over 20 years Meetings
To average 40% above 4-6
Traditional valuations Price
Discussions
3

22. The refreshingly different approach to selling your client’s business
Example – Traffic Management Products
Comprehensive research = excellent results
Traffic Management Products:
Prospects researched: 229
NDA’s Signed: 25 +
Offers: 5
Lowest bid £1.0M sold for £6.46M (valuation based on multiples £3.0M circa)..
Why? The buyer Dewhurst Plc was experiencing eroding margins and stiffer competition
from China for its products and services in “Elevators”. Selling to the same customers as TMP
they saw TMP as an opportunity to diversify into a rapidly growing and already successful
business and market sector where they had sales experience and contacts.

23. TMP: What could the referring IIB
Associate earn?
Sold for £6.46m.
Referral fee £ 3.4k
Share of success fee (£6.46m x 3% x10%) £19.4k
Wealth management fee on £4m £4k p.a.
Tax Strategy (on £1m) £34k
Total Revenue £60.8.4k year one. (+£4k p.a. ongoing)
Non accountants & IFA’s team up with other IIB Associates & share revenue.
This is one of the great benefits of being part of the IIB; you’re able to offer
clients a full solution

24. The refreshingly different approach to selling your client’s business
5. Concluding the sale
• Letters of intent from final runner/s
• Final selection or preferred purchaser
• Competition maintained
• Law firm appointed
• Due Diligence
• Transaction

25. The refreshingly different approach to selling your client’s business
Brief 1:7 rejected
230
25
12 or
230?
£7333
X 6 mnths 3
3%
1

26. The refreshingly different approach to selling your client’s business
Partner referral scheme:
• £3,400 for the referrer from the Base Fee, in 2
tranches – upon first stage payment by the
client and 5th (out of 6)
• 10% of the Success Fee as received by BCMS
• Support through educational seminars,
newsletters, networking opportunities, etc

27. The refreshingly different approach to selling your client’s business
Potential revenue
Company size £1m - £100m
Name Sale Price Ref Succ’ WM Tax Tot
fee fee 80%
Energy Efficiency £4.0M £3.4k £12k £3k £27k £45k
Waste Management £19.1M £3.4k £57k £15k £129k £235k
Tool Maker Company £5.4M £3.4k £16k £4k £34k £58k
Travel Management £7.0M £3.4k £21k £6k £48k £78k
Events Management £3.55M £3.4k £11k £3k £24k £41k
Hardness Testing £18.5M £3.4k £56k £15k £126k £200k
IT Development Int’ £14.1M £3.4k £42k £11k £96k £152k
WM @1% funds invested Tax @ £34k per £1m

28. Realise the value
Realistic fee potential –
based on these case studies
IIB Associate referring just one successful client each two
years over the next 4 years
Referral fee £ 6.8k
Success fee £ 61k
Wealth management £ 16k p.a. recurring
Tax strategies £138k
Total income potential £206k
N.B. £16k is annual recurring
Calculation based on the average of all 7 studies

29. Realise the value
Realistic fee potential –
Based on these case studies
IIB Associate referring two successful clients each year over
the next 4 years (7 in total)
Referral fee £23.8k
Success fee £215k
Wealth management £ 57k p.a. recurring
Tax strategies £484k
N.B. £57k is p.a. recurring £ 728k
Calculation based on the total of all 7 studies

30. Realise the value
The Next Step?
The Passive Approach??
Wait for clients to approach then refer
The Proactive approach!!
Let BCMS do the marketing
Free collateral for web and mail plus email

Let BCMS do the Selling
 Free seminar places or
 Free Business Evaluation Consultation

31. Realise the value
Let BCMS make it easy for you
We will provide
tested text for
own branded
letters or emails
NO COST NO RISK NO OBLIGATION

32. Realise the value
Let BCMS make it easy for you
We will provide
a free wireframe
with text to
add an M&A
page to your
website
NO COST NO RISK NO OBLIGATION

33. Realise the value
Let BCMS make it easy for you
We will provide
A pdf copy of
this book with
your contact
details
NO COST NO RISK NO OBLIGATION

34. Realise the value
Let BCMS make it easy for you
We will provide
copies of
this book
NO COST NO RISK NO OBLIGATION

35. Realise the value
Let BCMS make it easy for you
The most effective introduction is
UK US Ire Be CH Clients to a local seminar or ….
A FREE Business Evaluation Consultation
Direct mail email & web copy supplied
Monthly email information updates
 60 + UK seminars p.a. FREE
 Business evaluation meetings FREE
NO COST NO RISK NO OBLIGATION

36. Realise the value
The Next Steps? 1 2 3……..
1. Sit down (with colleagues if appropriate) and list the potential clients
2. Use the collateral supplied to invite them to a seminar or a Business Evaluation
3. Or fix a meeting with them to chat the idea through
How To Get A Client Meeting Effortlessly
To book a meeting why not call your appropriate clients, or mail them using the BCMS collateral
provided for you, and simply say, 'I have got some interesting new information on how to evaluate
the possibility of selling your business for a premium, either now or in the future.
Can we schedule in 45 minutes to explore this together?’
Fill in the Partners referral form and BCMS will arrange a FREE Business Evaluation Consultation

37. Realise the value
The Next Steps? 1 2 3……..
I will send you an email with;
Free collateral details
Programme overview
Script for customer invitations
PLUS…. The referral form
Fill in the Partners referral form and
BCMS will arrange a FREE Business
Evaluation Consultation

38. Realise the value
To get your collateral and
referral forms
Please email david.oliver@bcmscorporate.com
NO COST NO RISK NO OBLIGATION