Mark Ostryn, Director of Strategic Transactions in Sydney, Australia has developed a program that ensures mid-market Food & Beverage businesses sell for the highest possible value. This entails three steps: 1. Assessing the current and potential market value of the business (Value Discovery) 2. Working in collaboration with food & beverage industry experts to improve the value of their assets. 3. A sale process designed to stake out the most strategic buyers.

1. Maximising Sale Values for
Mid-Sized Food & Beverage
Businesses

2. Food & Beverages:
Challenges &
Opportunities

3. Valuation | Exit Planning | Sales & Acquisition
Strategic Transactions are mid-market
M&A specialists helping mid-sized
businesses with strategic sales and
acquisitions.

4. What makes a valuable
(and saleable) business”?
• Barriers to entry.
• Blue chip customers
• Great distribution
• Low employee turnover
• Know how
• Long term contracts
• Expansion opportunities
• New product pipeline
• Loyal customers
• Well trained, motivated staff
• Recurring revenues
• Scalable business
• Reputation
• Technology
• Vision
• Intellectual property
• Acquirer goal alignment
• Reliable suppliers
• Focussed planning

5. Our Goal
Enhance
your
business
value
Get the
maximum
sale value
for your
business

6. Align your strengths &
vision with buyer needs
Make you
accountable
Proactively finding
buyers in the meantime
Make you
more
valuable

7. Making your key business assets as
valuable as possible.
+
The Obvious Recipe for a Successful Business Sale
Having a (strategic) buyer with the
motivation to acquire those assets.

8. Your Value Creation Journey
Low Value High Value
Value Discovery è Strategic Transactions
Benchmark | Track | Optimise
Financial People Systems Product Competitive Brand IP
Asset Optimisation

9. Stage 1
Valuation è Asset
Identification Stage 2
Asset Optimisation
è Value Creation
Stage 3
Sale of Business
3-Stage Journey to a
Dream Exit

10. Step 1:
Valuation è Asset Identification
Step 1: Valuation

11. Importance of Value Discovery
• Measures potential buyer interest
• Future oriented
• Uses database of precedent transactions that analyses
buyer motives
• Facilitates a strategy and a roadmap
• Objective approach – holistic to business which gives a
market view rather than seller view.
Step 1: Valuation
Future oriented
Measures potential buyer interest
Facilitates a strategy and a roadmap
Objective approach – holistic to business which gives a market view rather
than seller view.
Uses database of precedent transactions that analyses buyer motives

12. Use Value Discovery
to assess:
• The value of your
business now?
• The potential value of
your business?
• What “assets” need to
be optimised to close
this “value gap”?
Step 1: Valuation

13. Stage 1: Valuation

14. Step 2:
Asset Optimisation è Value Creation
Step 2: Value Creation

15. The
7-Asset
Optimisation
People
Assets
System
Assets
IP
Assets
Brand
Assets
Competitive
Assets
Product
Assets
Financial
Assets
“Income follows
assets.”
- Dent Global
“Value follows
asset
optimisation.”
- Strategic Transactions

16. Value
Discovery
Financial Operational Strategic

17. Asset Action
Financial Asset
Rolling Forecasts, Valuation, Transactions, Capital Structuring,
Sensitivities / Scenarios
People Asset KPI, Margin Analysis, Cash Flow Management
Systems Asset Dashboards, Performance Analysis
Product Asset Revenues & Growth Models, Profitability Analysis
Competitive Asset Product Mix Analysis, Channel Mix
Brand Asset Recurring Revenues, Lifetime Customer Value
IP Asset IP Valuation
Financial

18. Financial
Tracking
Step 2: Value Creation

19. Forecasting &
Budgeting
Step 2: Value Creation

20. Operational
Asset Action Example
Financial Asset Introduce dashboards for key financial indicators
People Asset Build new employee onboarding & training program
Systems Asset Optimise CRM to suit different type of customer interactions
Product Asset Evaluate new product categories based on trends
Competitive Asset Optimise best practice / sustainable production
Brand Asset Consistent branding style guides
IP Asset Document all process and methodologies

21. Strategic
Buyer
Motivations
Market
Intelligence
Find Buyers
Growth –
Acquisition/
Investment

22. Timing
the
business
sale
Future potential, but challenging to exploit.
External interest and business is operating
optimally.
Processes & documentation are in order. – Full
knowledge transfer.
Barriers that are more surmountable to others.
Failure to obtain an incremental ROI on extra $
of marginal investment.

23. Step 3:
Continual Growth or Exit Business
Step 3: Value Creation

24. Australia Mid-Market M&A Transactions
in Food & Beverage Sector
Total no. of deals 46
Total estimated value
of deals
$1.62 billion
Top 3 buyer
motivations
Product Expansion (37%)
Geographic Expansion (22%)
Economies of Scale (17%)
Public v private
acquirer
Public (37%)
Private (63%)

25. Food & Beverage
Acquirer Type
Public (37%)
Private (63%)
Total no. of
Deals
46
Total estimated value
of deals
$1.62 billion
Top 3 Buyer Motivation
Product Expansion (37%)
Geographic Expansion (22%)
Economies of Scale (17%)
Australia Mid-Market
M&A Transactions

26. Food &
Beverage:
The Strategic
Sale

27. Align your strengths &
vision with buyer needs
Make you
accountable
Proactively finding
buyers in the meantime
Make you
more
valuable
Ultimate benefit
of Strategic
Transactions

28. 10 Step Process to Sale

29. What other
business
owners say
about us.
Mark is one of the finest
Financial thinkers I have had
the pleasure to work with.
From his honest critique of our
first ever business plans
through to his determined
approach to "get the numbers
right" as we were valuing our
company through to his always
generous advice and help as we
continue to grow our business.
– George Germanos
Mark was engaged by Brian
and myself, to assist in the sale
of our company, the Vocational
Capacity Centre (VCC). His
work exceeded our
expectations both in terms of
securing a purchaser and in the
price that was obtained for the
sale. Mark’s approach was
systematic, thorough and
perspicacious.
– Professor Robert Pryor PhD