Ronald Greeley presents information to help small business owners maximise the value when selling their business.

1. Sunbelt Seminars Presents:
Maximizing The Value of Your
Privately Held Business
352 Dorval Ave, suite 207
Jardins Dorval , Dorval, Quebec
H9S 3H8

2. Thank you for attending
WELCOME!
Thank you for attending our seminar “Maximizing the Value of Your Privately Held Business”. W will share
e
some ideas and experiences that we hope will be beneficial in your understanding of the “Real World” of privately owned
businesses and the factors that affect their value.
That Sunbelt is the largest business brokerage network in the world with over 300 offices in 14 countries is
not particularly important to this presentation. However the source of this presentation comes from the experience pool of
a large network of professional business brokers.
In this seminar Ron Greeley will convey awareness of areas that drive the value of a business, methods and
factors involved in valuation , confidentiality in the sale or transfer of the business, finance issues , how we help protect all
parties throughout the process with a goal to arriving at a win-win scenario for everyone involved.
Ronald Greeley CMSBB Business Intermediary CLU EPC
Sunbelt W Island 514-694-0554 poste 9
est
www.SunbeltNetwork.com

3. Seminar Presenter
Ronald Greeley CMSBB CLU EPC is a retired financial planner with
Over 25 years in the financial services sector.
• Born in Toronto and living in Montreal for many years Ron has extensive
experience in management within small, medium and large privately held
companies in addition to having bought, successfully operated and sold
his own business before joining the Sunbelt office on the West Island of
Montreal.
• He is trained in the intricacies of pricing businesses, bringing buyers and
sellers together and negotiating long term solutions.

4. Purpose of this Seminar
Planning and Preparation.
• Awareness of value drivers.
• Who can you talk to.
• Confidentiality is King.
• Don’t wait till it’s to late.

5. Setting the Rules
1. Defining Business Size
a. Big Business (football rules), often times publicly traded stock
Financials (audited statements – 2 sets of books )
Goal to increase shareholder value by maximizing profits.
Management Team
b. Medium sized Business (basketball rules)
Financials ( review engagements? )
Management Team ??
c. Small Business (baseball rules)
Confidentiality
Financials ( notice to reader? )
Goal to lower taxes with lower declared profits.

6. Value Drivers …..
What are they???
• Good Books
• Documentation of Policies and Procedures.
• Your Management Team.
• Diversification of Concentration of Clients.
• How solid is your Revenue stream.

7. Value Drivers …..
• Physical cleanliness and appearance.
• A well structured transition program.
• Tax preparation. (what a tax dollar is worth)
• Fix legal issues.
• Availability of Financing!!!

8. Availability of Financing is a Critical Factor...
What impact can it have on value.
• Have you ever bought a house without a mortgage?
• How many minivans and SUV’s would be sold without
financing.
• What you declare affects what a third party will finance.
• What you don’t declare may need to be financed by
you.

9. Other Critical Factors ...
• Confidentiality
• Location
• Track Record/ Product or Service
• Longevity/Reputation
• Why are you selling?
• Tax considerations.

10. Valuing a Small Business
Methods and Factors…..
• What is the purpose of the valuation?
• When and why should a business be evaluated.
• Which Methods are used in valuing a small
business.
• How can other Critical Factors affect the value of
your business.

11. What is the Purpose …..
Many purposes for evaluating a business.
• Partnerships.
• Marriage or Divorce.
• Insurance.
• Financing growth.
• Succession Planning.
• Sale of the Business.

12. When and Why Evaluate a Business
• Be prepared for the unexpected.
• Get ready for Change.
• Keep the information up to date.
• If you can measure it you can manage it.
• Learn what drives value.
If you know where you stand today, and where you want
to be tomorrow; You can plan to get there.

13. What about these numbers…
Methods of valuing small businesses.
Three Approaches :
• Market Approach
• Asset Approach
• Income Approach
Value versus Price.
• What is Fair Market Value?
• How do I come up with the Most Probable Selling Price.
Availability of Financing
• Is it a factor.
• How does it impact value

14. Market Approach
Principle of Substitution
“A buyer will pay no more that which he/she would have to pay to
purchase an equally desirable substitute”
• Can you find comparables?
• Can you adjust for all the differences?
• How much real data is there?
• Is all the data relevant?
• What about the marketplace?

15. Asset Approach
Fair Market Value versus Book Value?
• Most useful when the Fair Market Value replacement cost of assets
represents most if not all, of the value of the business.
• Certified equipment appraisals valuable to obtain bank financing.
• Not useful when the value of the business is largely derived from
intangible assets.

16. Income Approach
Multiple of what ……...
• What is the right Multiple?
• Art or Science ?
• What numbers can you prove?
• What are you willing to show?
• What is recasting?
• What are the true owners benefits

17. Business Transitions
Hold and grow, or Sell and Go?
• The decision to transfer or sell your business is a
choice that only you, the business owner, can make.
• Sunbelt has successfully represented companies both
large and small in manufacturing, distribution, retail,
and service industries.
• Understanding the transaction process helps owners
make tough decisions.

18. Best Buyer is Often the Farthest Away
• Buyers are generally divided into two categories—Strategic and Financial.
Buyers that can achieve operational or strategic benefits from acquiring
your company are classified as Strategic. Financial buyers are more
concerned with the return on investment that can be earned.
• Sunbelt maintains a large database of both Strategic and Financial
buyers, both local and international. In filtering these buyers, we are able
to search out more buyers that are best suited to each unique situation.

19. Critical Steps in the Transition Process
• Meet with your Sunbelt Advisor
• Preparation of an exclusive valuation
• Client Decision to Transfer the business, Go to Market or Wait to
build value
• Preparation of a Confidential Business Review
• Strategic plan to maximize the value of the business
• Conducting Targeted Buyer Search
• Negotiating offers
• Due Diligence
• Purchase Agreements
• Closing

20. Importance of Confidentiality
• If you decide to Sell your business Sunbelt Business Advisors you will gain
national and international exposure. The exclusive Sunbelt website is viewed by
Strategic and Financial buyers daily. Sunbelt has a large network with over 20
Canadian offices 300 U.S offices and locations in 14 countries. By engaging
Sunbelt you achieve confidential worldwide exposure. Sunbelt understands the
importance of privacy when it comes to your company and the confidential
information.
• At Sunbelt there is personal attention by experienced professionals tracking and
monitoring the stages of your business transaction. By focusing on objectives and
using proven methods our dedicated personnel will provide highly professional
services. Sunbelt does big business with attention to small details.
• Our job is to help you reach YOUR goals.

21. Thank you!
• Thank you for attending our seminar
• If you feel you have any questions please call!
• I will be pleased to set up a confidential meeting.
Ronald Greeley CMSBB CLU EPC
Sunbelt West Island
514-694-0554 x9
ronald.greeley@sunbeltnetwork.com
www.Sunbeltwestisland.com