The document provides advice for building a business for an acquisition. It emphasizes the importance of having the right team, knowing your business inside and out, and preparing your growth story to demonstrate value to potential buyers. The author recommends focusing on your strengths, accurately forecasting growth and cash flow, and being transparent during the acquisition process. Proper preparation now will help maximize value when an acquisition offer arises.

1. Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition January 25, 2012 [email_address]

2. Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition What Do you want next?

3. Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition How to Get there: Your Team Know your business What do they want? What do you want? Get help executing your plan

4. At 15, I had 2 Goals- 1) Bicycle NYC-Seattle 2) Don’t walk any hills

5. Problem – flat tire before we left New York – 2 more that day

6. Very Long Hills No “I” in TEAM

7. 3,752 miles later!

8. … Then We Climbed Mt. Rainier (Right goal, wrong tools)

9. Meet Mark, Entrepreneur

11. 1) It’s ALL About Your Team

12. Do You Have the Team You Need? Hire SLOWLY, fire quickly Great people drive your business, bad people kill it

13. What If You Could Read Them? YOU CAN!

14. How They Do It – Read Behaviors

15. Why They Do it – Values

16. How Does Your Company Look?

17. Values Drive Your Team (Train for skills)

18. Train Your Team – then Have Fun

19. 2) Know and Grow Your Business What do you want? What’s your number? Focus: the attracting force for buyers Prepare NOW for an acquisition The DOs and DON’Ts

20. How to Get to the Altar? Acquirers Love Businesses That Are: Focused and unique Have great people Growing, cash flow, profitable Add value to buyer

21. Stand Out with Your Growth Story Are your Forecasts accurate? Cash flow is king - not EBITA, etc Increasing margins show your efficiency Be transparent – elevator pitch

22. 3) Make The Buyer Look Smart Show fast entrance into a new business - you are expert Deliver the “Promise of pot of gold at end of the rainbow ”

23. Strengthen Your Business Now – AIM! A ccept: Plans that fit in your current sandbox I nvest – make real growth plans M easure – KPIs, ROI, your key numbers Repeat!

24. A Secret They Won’t Tell You They buy you - then the business Be nice, open, curious, helpful and positive

25. 3 STEPS HOW TO KILL A DEAL… Be a Cocky Arrogant Jerk Disrespect your commitments (blow off stuff, be late) Screw the other guy

26. 4) What Do You Want Next?

27. Get Ready to Jump In Negotiate Key elements at the start of the process Roles, reporting, goals, time, meetings Compensation, bonus, earn-outs, stock Contract length, non-compete, severance Find a few senior champions for you

28. 5) Get Ready Now What if a buyer knocked today? Have you done your own due diligence (as if you were a buyer)? What’s on your “unknown risks” list and what can that cost you? When will you start planning for the future?

29. 5) HOW to Get Ready Now Create a list of target acquirers or strategic investors/partners Work with your team and an expert to create your 1-2 year plan Do MORE of what you do best, kill the other stuff Create a content plan for media and events

30. Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition How to Get there: Your Team Know your business What do they want? What do you want? Get help executing your plan

31. THANK YOU! mark@markfriedler.com (Follow up with markfriedler here too)

32. Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition (Thank you! Connect with markfriedler) mark@markfriedler.com 415.683.6601