"Over 50% of acquisitions had prior partnership relationships!" Whether you are seeking to be acquired or to partner for revenue growth, the process is similar, a Partnering Process. Better to be approached to be bought than to actively sell your company. How do you do it? Want to grow the 'Strategic Value' of your business? Learn how to Increase your: ● Attractiveness ● Potential ● Revenue growth While increasing your shareholder value!

1. Partnering as an Exit Strategy
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2. Questions
Q: Interested in Who and
How do you approach
potential acquirers/partners?
Q: Would such Partnerships need
to be exclusive (if you’re that
potentially valuable to them)?
Q: Does this not confuse the
roles with M&A Specialist
focus?
Q: How large should the
potential partner/acquirer
company be?
Q: How do you get partners
to resell our solution?
Q: What types of partners
should seek to partner with?
Q: How do we get our
partners to do more?
Q: How long should you
partner before
seeking/expecting to be
acquired?
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3. Welcome
If you have any questions,
please interrupt…
Type into the Chat/Question screen
Donagh Kiernan, Founder and CEO
Tenego Partnering
www.tenegopartnering.com
http://ie.linkedin.com/in/donaghkiernan
Donagh Kiernan
Founder and CEO
Tenego Partnering
27 years – Techie background Sales
Channel, Direct Sales and Channel
Sales Organisation Management.
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4. Tenego: Services
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5. Tenego Clients
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6. Tenego’s Methodologies
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7. Tenego’s Global Network
• To date, executed projects across UK & Ireland,
Across Europe, North America, Mexico & Latin
America, Middle East, North Africa, India, China,
South Asia…
• Growing Global Network of Tenego Offices with on
the ground presence and in discussion in
– Ireland (HQ), UK, Germany, Netherlands, Greece
– Middle East, APAC
– Canada, US East Coast, US West Coast …
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8. Partnering as an Exit Strategy
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9. “50% of acquisitions
have prior partnership relationships”
“Tenego’s activity increased the value of our trade sale
and also accelerated the process” -Tech CEO,
(whose company was acquired by one of their partners)

10. Exits - Sellers and Buyers
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Buyers
• “Too often company executives driven
by expanding their empire or blinded by
a ‘quick fix’ for entering a new market,
end up in an overpriced deal” - Inc.com
• “They completely overlooked our
people when they purchased us”
• The prime reason for acquisition failure
is poor culture fit.
Sellers
• “If you’re building your business to sell,
then focus on building a great
business. Don’t focus on selling your
business”, - multiple business leaders
• “In up to 50% of trade sales, a prior
partnership relationship existed
between the companies” - Silicon
Valley M&A Experts
• The prime reason for Partnering
failure is Poor Partner Fit

11. Exits: Sellers and Buyers
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Buyers: Wants
• Acquire at good value, while
accelerating their growth and/or adding
shareholder value
• Minimise risk, in solution and company
fit within their business
• enable continued growth with quick and
easy integration
Buyers: Challenges
• The cold evaluation/due diligence
process can only tell so much
• High risks in getting it wrong.
Sellers: Wants
• Exit with the optimum valuation, as
early as possible
• Maximise cash payment while
minimising earn-out period
• Take care of career paths for your
team, and the senior team and
maybe founders too
Sellers: Challenges
• Multiple risks to achieve growth and
desired valuation target
• Risks in getting it wrong, fire-sale,
dying early or zombie.

12. What is your Exit Strategy?
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• Why will your company be bought?
• How will an acquirer value in your business?
– Revenues
– Value of Customers in your market region or sector
– With your technology and capabilities, THEY can grow faster
– …
• How to you get bought, rather than Seeking to Sell
– How do you get on the radar of an acquirer?
– How do you maximise your valuation?
• Be Careful
– Chasing the wrong valuation metric
– Chasing a finish line with an exit in mind
– Seeking to sell without being ready may devalue your business.

13. Consider your Exit Strategy?
• Lead your own Vision, not someone else’s
– Risks in determining why you will be bought
– Risks in pre-selecting potential acquirers
– Are they on the right path?
• Build a Great Business while building shareholder value
– Grow to last – to forever grow
– While always being corporately ready
• Lead the market – Influence the market
– Create your own market (as you define it)
– Make them follow you
– Be acquired for your leadership in the market.
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14. Build a Great Business & Shareholder Value
• Execute well – Build your Growth Engine by delivering growth
– Build your International marketing, sales and delivery orgs
– Build a clear strong sales engine with multiple revenue streams
– Continually address the scalability challenges in your business
• Learn to Partner, Learn to Grow - Strengthen Position:
– Partner across the market
– Partner with competitors in different markets, sectors and regions
– Partner with potential acquirers for revenue purposes, on your plan
• Demonstrate Strength, Independence and Leadership
– Do things and demonstrates your direction, your potential and add
shareholder value to your business.
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15. How do you Partner,
with an Exit in mind?
or
Do you want to actively
seek an Exit, NOW?

16. What types of companies are suitable?
Partner Type Selection & Partner Fit
a) Capabilities you have / Capabilities you need to grow
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Product/Solution/Services
Business Engine Market,
Sales & Delivery
Market EcoSystem:
Company Types
Partner Type Evaluation

17. 17
Influenc
Certification
Codes of Practice Public Sector, Local Authorities
Analysts
Media
Industry
Organisations
TargetCustomers
Water
Electricity
Gas
Advisors/Consulting
Accountants / Tax
Advisors / Business
Consulting T1
Legal*
Accountants/Business
Consulting T2*
BPO Industry
Organisations
DebtServices&
Collection
Specialist Debt
Consultants / Credit
Checking *
Debt Recovery*
BPO Accounts
Receivable
SI’s&ITServices
IT Consulting
Systems Integrators*
,
IT Managed Services
IT Services
Software
Solutions
Debt Management
Software*
Contact Centre Mgmt
Systems*
Workflow /Doc
Management /Case
Your Market Ecosystem
What Company Types have access to
your customers and the capabilities
to help you sell?
AND / OR
Could potential buy your company?

18. Partner Type Evaluation / Scoring
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Leads
Plan
C
reate
Q
ualify
D
evelop
Prove
N
egotiate
C
lose
Im
plem
entSupport
Value
Added
Solutions
Know
ledge
&
Focus
Existing
&
G
row
ing
C
ustom
erBase
C
redibility
/Influence
w
ith
D
ecision
M
akers
Ease
ofdoing
Business
O
pportunity
forPartner
Tim
e-to-Engagem
ent
Partnering
Experience
#
PotentialC
o's
in
M
arket
Lead
G
en
Sales
D
eliveryK
ey
C
riteriaFullProcess
Business/IT Consultants Regional 2 4 4 4 4 4 2 2 3 1 0 2 2 5 4 3 5 3 5
Business/IT Consultants Regional
43 41 33 29 59
Sales and Delvery Process Key Characteristics Summary by Capability
Sector Specific Consultants 3 5 5 5 5 5 3 3 4 1 0 6 3 6 4 4 5 4 3
Business/IT Consultants Regional
53 51 40 35 74 3
BPO 3 5 5 5 5 5 5 5 3 2 2 4 3 5 2 2 2 4 3
BPO
43 45 32 25 70 4
System Integrators (VARs) 4 5 5 5 5 5 5 5 5 5 5 5 4 5 5 5 5 5 4
System Integrators (VARs)
57 58 53 38 92 1
Sector Specific Solutions 4 5 5 5 5 5 5 5 2 2 0 5 5 5 4 4 2 4 3 51 52 36 32 75 2
Direct (current) 0 5 5 5 5 5 5 5 4 4 3 2 5 2 3 3 3 5 3 Direct (current)41 46 37 26 72
Our Partner Propositions -
enabling or providing
for the partner…
Evidence
ofStrong
Value
Proposition
(0-6)
O
pportunity
forPartner
(0-6)
O
pportunity
forVendor
(0-6)
The Value the Company Types bring to us
59
Business/IT Consultants
Regional
in supporting the sale of Vendor;to provide services on business
process development, training, documentation and change
management, and licence revenue share
2 3.0 3.9
introductions/referrals into deals and local expertise in consulting
services
3
Sector Specific
Consultants
in supporting the sale of Vendor;to provide sector specific services on
business process development, training, documentation and change
management, and licence revenue share
1 4.0 4.9
introductions/referrals into deals and local expertise in consulting
services
4 BPO
enabling BPO's to provide flexible integration and solutions to their
clients businesses and revenue stream, or credits, in introducing their
clients to the solution
4 2.0 4.7
Grow Pivotal licence share on a per seat basis and int
1
System Integrators
(VARs)
enabling Implementation service revenues and licence share AND a
plaform and global marketplace for sector specific solutions developed 4 5.0 6.1
full lead gen, sales, implementation and support representation for
Vendor and opportunity for new solutions
2 Sector Specific Solutions
providing sector specific CRM based applications adding value to their
existing sector solutions 1 4.0 5.0
introductions/referrals into deals and local expertise in consulting
services

19. Partner
ManagementPartner RecruitmentPartner Type Selection
Step 1
Define
Partnering
Requirements
Step 2
Evaluate
Target Markets
Internal Intelligence
• Products/Services
• Proposals
• Customers
• Sales Process
• Sales Collateral
Evaluate Market
•Product Markets
•Specialist Service
Markets
•Routes to Target
Customers
Step 3
Select Targets
&
Define Approach
Define Approach
•Analyse and Score
•Select Initial Targets
•Define Specific
Business Case
Step 4
Make Approach
&
Determine Fit
Make Approach
•Approach target
companies, starting
with Top Targets
•Determine Interest
and Strategic Fit
•Review Approach
Step 5
Establish & Build
Business
Relationship
Partners
•Ensure Marketing &
Sales Fit
•Ensure Operational Fit
•Ensure Strong
Reference Sites
Outputs
•Partnering Objectives
•Partner Value
Proposition
•Sales and Delivery
Capabilities Required
Outputs
•Market Eco-System &
Trends
•Competitors Review
•Target Partner Types
Profiles including
search criteria
Outputs
•Scored Lists
•Top Targets
•Specific Business
Cases
•Approach Action Plan
Outputs
•Selected Initial
Partners
•Agreed Partnering
Terms (Tentative)
•Identify Initial
Engagements
Outputs
•Working Initial
Partnerships
•Repeatable Partnering
Model
•Partner Maximising
Plan
Week 1 to 4 Week 5 to … On-going
Tenego’s Partnering Process

20. Partner / Acquirer Approach
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Decision Makers:
• Head of Product / Strategy / Business Development
• OR Corporate Development (are you sure?)
• Depending on size
Approach:
• Partner Value Proposition for revenue purposes
– Additional revenue from their existing customers
– Help them win new customers
– Key additional functionality or product suite module
• Acquisition Proposition
– Growth Potential
– Capture (own) the value they can create with your product.

21. Partner Management - Exit Influencing
• Understand:
– Partners' Acquisition policy and activity
– Decision Makers' motivations to acquisitions
• Determine activities in influencing decision makers
– Partner with competing companies:
• Creating perception of being everywhere
– Partner/influence all layers of their EcoSystem:
• Analysts, Trade Associations, Trade Media, Consultants, Service
Companies, Resellers and Solution Companies.

22. Next Step Actions
1) Assess your company’s/product’s Growth Potential
2) Assess the Partner Types for Revenue & Acquisition
3) Execute; Recruit Partners, Manage Partners, Drive Revenue
– Structure your Partner Recruitment, Partner value Proposition and
Partner Management approach
– Build multi-level relationships across Marketing, Sales,
Implementation, Support, Product, Senior Team including Corporate
Development
4) Build a Great Business, spread your inter-dependence,
Create Value
5) Wait or Trigger Acquisition discussions.
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23. Thank You & Questions
Donagh Kiernan
Founder & CEO
Tenego Partnering
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24. www.tenegopartnering.com/resource www.tenegopartnering.com/blog
Further content available online
Presentation can be found here:
https://www.slideshare.net/DonaghKiernan/partnering-as-an-exit-strategy
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25. Additional Webinars
• Other webinars available in our Resource Page:
• How to fix a Broken Sales Channel
• Partner Program Development for Scalable International Growth
• Planning 2017: Decisions and Tools for Growth
• Sales Partner Management for better Partner Engagement
• How to ensure Partner Fit. It's not as simple as it may seem
• Meet Your Revenue Targets with Focused Sales Execution
• Finding Big Markets for Big Data & Data Analytics Solutions
• Business in Europe: Understanding the bigger opportunities
• Growing your Business in the UK
• Germany: Opportunities for Tech Companies
• Market Opportunities in Australia for Tech Companies
• How To Prevent The Mistakes in Sales Channel Development
• And many more…
www.tenegopartnering.com/resource 25

26. Related Articles
• Available in our Blog:
• Want to sell your company? Then Partner with potential acquirers
• The First 100 Days of Taking Control of Your Sales Channel
• Are you Strategic to your Strategic Partner? - Software Sales Channels Unrequited Love
• 5 In & 5 Out in Reviewing & Improving Your Sales Channels - Part 2 of 2
• 5 In & 5 Out in Reviewing & Improving Your Sales Channels - Part 1 of 2
• What Partner Types do you want in your Partner Program?
• 5 Hard Things in Building an Effective Partner Program
• 5 Points on Breaking Preconceived Notions with Just Enough Analysis
• Your Sales Focus? Quarter-end Targets AND/OR Game Change Next Year?
• One Engine, many speeds: Managing Direct Sales and Partners
• 5 Partner Management Styles - Which one are you?
• Diagnose your Current Sales Channels - Partner Fit Evaluation
And many more…
www.tenegopartnering.com/blog 26

27. Build & Manage Sales
•
Direct and Channels
•
Executive Hands-on
•
Your Alliances Team
•
Software Business
Experts
•
Practical
•
Results Focussed
CONTACT DETAILS:
Tenego Partnering
Ireland (HQ), UK, Germany, Greece, Benelux,
Australia, Toronto, Dubai…
Web: www.tenegopartnering.com
Email: info@tenegopartnering.com
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