The document discusses planning for the optimal timing and maximization of value when selling a mid-market business. It covers factors to consider such as valuation methodology, internal and external risks affecting value, timing the sale based on the business lifecycle, and determining how much money is needed for retirement. Selling at the right time and working to minimize risks can help business owners achieve the highest sale value for their company.
Welcome to our brief presentation on the MidMarket Capital Selling Process – elements of a successful sell-side engagement. We believe there are several desired results from a successful process including completing the sale in the shortest amount of time, minimizing the demands on the company executive team, maximizing the price and terms for the owners, and finding the right buyers that will serve both current employees and acquired customers while preserving the legacy of quality the owners have built. This presentation details our process.
Are you ready to sell your business? Do you have an exit plan? Let Murphy Business Brokers help guide you through your valuation and sale of your business. www.elitecarolinabrokers.com
9 steps to prepare your business to sellPaula Carr
9 Steps to Prepare Your Business to Sell
If you have determined now is not the best time for selling your business, you still can begin to take steps today to prepare for selling now or in the near future. Some of the things you can do before the business goes on the market will take time and can be accomplished over the next year or so.
Learn the steps you should take to get your business in shape to realize a much higher asking price.
www.murphybusiness.com/raleigh
Welcome to our brief presentation on the MidMarket Capital Selling Process – elements of a successful sell-side engagement. We believe there are several desired results from a successful process including completing the sale in the shortest amount of time, minimizing the demands on the company executive team, maximizing the price and terms for the owners, and finding the right buyers that will serve both current employees and acquired customers while preserving the legacy of quality the owners have built. This presentation details our process.
Are you ready to sell your business? Do you have an exit plan? Let Murphy Business Brokers help guide you through your valuation and sale of your business. www.elitecarolinabrokers.com
9 steps to prepare your business to sellPaula Carr
9 Steps to Prepare Your Business to Sell
If you have determined now is not the best time for selling your business, you still can begin to take steps today to prepare for selling now or in the near future. Some of the things you can do before the business goes on the market will take time and can be accomplished over the next year or so.
Learn the steps you should take to get your business in shape to realize a much higher asking price.
www.murphybusiness.com/raleigh
7 critical points every seller should know before selling their businessPaula Carr
When it comes to selling a business, most business owners don't even know where to start or which questions to ask. The entire selling process may seem confusing and overwhelming. Some owners turn to their accountant or legal professional for advice, but those professionals represent only a fraction of the overall solution. When you consider that in a typical selling situation there are no less than four different professionals involved in the transaction ranging from accountants to investment bankers, it is easy to see why many people are afraid to even begin the process.
If you've been thinking of selling your business, let us guide you through the process, relieving the stress of selling on your own and eliminating any obstacles that may appear along the way.
www.murphybusiness.com/raleigh
Music Education: Management and Innovation Conference Jodie Vickerstaff
Neil Farnworth, Enrich Training and Consultancy at Paritor's Music Education: Management and Innovation Conference 2011.
About the conference:
This is a national conference and will focus on the relationship between new business practices and a future vision of music education management.
It will take place over one day and bring together prominent leaders in both the field of music education and business in order to provide a comprehensive overview of this rapidly evolving area.
The role of music education is changing with funding uncertain and the added opportunity of becoming the core of the music hub it is time
to be equipped for the future. The aim of the conference is to present music educators with the modern and innovative practices as well as a
structure for management assisting them in their quest to future proof!
Maximising the effectiveness of distributors and agentsmsmsalesmanagement
For many businesses, distribution partnerships provide a significant leverage point to being able to sell and physically move product in markets. But the choice of distributor, legal structure and how the ongoing relationship is managed is critical to success. This presentation delves into the key questions of:
* Identifying environments where distributors are a strong channel choice
* Identifying the right distribution partners
* Structuring the game rules
* Developing a long term relationship that delivers sustainable sales as it would if you were there in person
For more information on the subjects contact:
Dan Hansen | Managing Director
MSM Sales Management Consultants
D: +64 (0) 7 571 1139 | M: +64 (0) 21 059 6233
Email: dan@msmsalesmanagement.com
Website: www.msmsalesmanagement.co.nz
Kylie van Heerden | Partner
Sharp Tudhope LawyersD: +64 (0) 7 928 0777 | M: +64 (0) 21 039 9404
Email: kylie.VanHeerden@sharptudhope.co.nz
Website: www.sharptudhope.co.nz/
What is Key Account Management? Key account management (KAM) defines full relationship between your business and the customers you are selling to. It describes the individual approach of sales people to their customers in order to create long everlasting business relationship.
10 important things commission-only sales agents consider before working with...CommissionCrowd
Commission-only sales agents are very different to working with in-house sales employees. It is vital that in order to attract self-employed sales professionals you understand the 10 most important things they look for before agreeing to represent a company.
CommissionCrowd is a revolutionary global platform that allows self-employed sales agents and companies to connect, manage your relationships, and work more efficiently together.
This top 10 list was based solely on a survey they carried out with the commission only sales reps on their database.
Zero to 100 - Part 2: Building a Repeatable, Scalable Growth ProcessDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
Delivered at Casual Connect Europe 2016
How do you prepare to sell your company? The preparation phase is critical in positioning your company for sale. Setting tasks and timelines, allocating staff resources, conducting internal due diligence, and readying financials are just a handful of items that need to be addressed to make sure the initial discussion with a prospective buyer leads to a successful transaction. This session will explore the tasks and requirements that, when the time is ready, will maximize your chances of success.
7 critical points every seller should know before selling their businessPaula Carr
When it comes to selling a business, most business owners don't even know where to start or which questions to ask. The entire selling process may seem confusing and overwhelming. Some owners turn to their accountant or legal professional for advice, but those professionals represent only a fraction of the overall solution. When you consider that in a typical selling situation there are no less than four different professionals involved in the transaction ranging from accountants to investment bankers, it is easy to see why many people are afraid to even begin the process.
If you've been thinking of selling your business, let us guide you through the process, relieving the stress of selling on your own and eliminating any obstacles that may appear along the way.
www.murphybusiness.com/raleigh
Music Education: Management and Innovation Conference Jodie Vickerstaff
Neil Farnworth, Enrich Training and Consultancy at Paritor's Music Education: Management and Innovation Conference 2011.
About the conference:
This is a national conference and will focus on the relationship between new business practices and a future vision of music education management.
It will take place over one day and bring together prominent leaders in both the field of music education and business in order to provide a comprehensive overview of this rapidly evolving area.
The role of music education is changing with funding uncertain and the added opportunity of becoming the core of the music hub it is time
to be equipped for the future. The aim of the conference is to present music educators with the modern and innovative practices as well as a
structure for management assisting them in their quest to future proof!
Maximising the effectiveness of distributors and agentsmsmsalesmanagement
For many businesses, distribution partnerships provide a significant leverage point to being able to sell and physically move product in markets. But the choice of distributor, legal structure and how the ongoing relationship is managed is critical to success. This presentation delves into the key questions of:
* Identifying environments where distributors are a strong channel choice
* Identifying the right distribution partners
* Structuring the game rules
* Developing a long term relationship that delivers sustainable sales as it would if you were there in person
For more information on the subjects contact:
Dan Hansen | Managing Director
MSM Sales Management Consultants
D: +64 (0) 7 571 1139 | M: +64 (0) 21 059 6233
Email: dan@msmsalesmanagement.com
Website: www.msmsalesmanagement.co.nz
Kylie van Heerden | Partner
Sharp Tudhope LawyersD: +64 (0) 7 928 0777 | M: +64 (0) 21 039 9404
Email: kylie.VanHeerden@sharptudhope.co.nz
Website: www.sharptudhope.co.nz/
What is Key Account Management? Key account management (KAM) defines full relationship between your business and the customers you are selling to. It describes the individual approach of sales people to their customers in order to create long everlasting business relationship.
10 important things commission-only sales agents consider before working with...CommissionCrowd
Commission-only sales agents are very different to working with in-house sales employees. It is vital that in order to attract self-employed sales professionals you understand the 10 most important things they look for before agreeing to represent a company.
CommissionCrowd is a revolutionary global platform that allows self-employed sales agents and companies to connect, manage your relationships, and work more efficiently together.
This top 10 list was based solely on a survey they carried out with the commission only sales reps on their database.
Zero to 100 - Part 2: Building a Repeatable, Scalable Growth ProcessDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
Delivered at Casual Connect Europe 2016
How do you prepare to sell your company? The preparation phase is critical in positioning your company for sale. Setting tasks and timelines, allocating staff resources, conducting internal due diligence, and readying financials are just a handful of items that need to be addressed to make sure the initial discussion with a prospective buyer leads to a successful transaction. This session will explore the tasks and requirements that, when the time is ready, will maximize your chances of success.
Introduction to Venture Capital and Private Equityguest89b446
I was invited to speak at the HR College of Commerce in Mumbai today as part of their "Corporate Dialogue" lecture series. This deck introduces freshman and sophomore students in commerce, economics and finance to venture capital, private equity and entrepreneurship. It also presents a primer on career options in finance for college graduates in India.
The Top Skills That Can Get You Hired in 2017LinkedIn
We analyzed all the recruiting activity on LinkedIn this year and identified the Top Skills employers seek. Starting Oct 24, learn these skills and much more for free during the Week of Learning.
#AlwaysBeLearning https://learning.linkedin.com/week-of-learning
An engaging presentation for business owners that discusses the important topic of understanding the value of your business, and maximizing to realize the optimum return when it comes time to transfer the business to a third party.
This presentation is for business owners who are interested in building and maintaining value in their company with an emphasis on positioning the business for transition, and exit plannig.
Understand and maximize the Value of your Business.David C. Smith
This presentation outlines basic information used to value a business and identifies the 4 points of Sellability that can be used to increase the businesses value.
If you are looking to exit a business, this webinar is perfect for you! Cover the process of selling; potential acquirers; timescales and tax considerations
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
2. Since 1999… Investment Bankers Providing Services Tailored To Privately Held Mid-Market Businesses ALPHA OMEGA CAPITAL SECURITIES, LLC An NASD Registered Broker/Dealer Richmond, VA ♦ New York, NY ♦ Lexington, KY ♦ Orlando, FL ~~~~~ Partners ~~~~~ Regional Vice Presidents Analysts IT & Admin.
3. Full Range Of Services Sell-Side Representation Engaged Buy-Side Representation Certified Valuations Capital Raise Value Coaching Our Firm ALPHA OMEGA CAPITAL PARTNERS
4. Planning Your Exit At Maximum Value Overview Part I: Valuation Methodology Part II: Considerations Before Selling Part III: Timing of the Sale Part IV: Value Maximization Part V: How To Sell Part VI: How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS
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7. When Risk Is Minimized For The Buyer, Maximum Value Is Obtained For The Seller! Our Goal: How To Sell At Maximum Value Valuation Methodology ALPHA OMEGA CAPITAL PARTNERS Definition of Value
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9. 1. Size of Business – Larger businesses sell at higher values Valuation Methodology ALPHA OMEGA CAPITAL PARTNERS Financial Factors That Affect Value Company Revenues Selling Price Value
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15. EBITDA (ĒBǏT-D-A) Pretax Earnings + Interest Expense + Income Taxes + Depreciation Expense + Amortization EBITDA SDE + EBITDA + Owner’s Comp - Replacement Salaries Seller Discretionary Earnings What are EBITDA and SDE? Valuation Methodology ALPHA OMEGA CAPITAL PARTNERS
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18. Planning Your Exit At Maximum Value Overview Part I: Valuation Methodology Part II: Considerations Before Selling Part III: Timing of the Sale Part IV: Value Maximization Part V: How To Sell Part VI: How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS
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20. ALPHA OMEGA CAPITAL PARTNERS Timing of the Sale Weighing The Facts ~ No Simple Answer Factors That Influence the Decision to Sell External Discount Factors Internal Discount Factors Personal Needs Decision To Sell
21. Considerations Before Selling Personal Factors Retirement Health Problems Divorce Boredom Other Opportunities To Reduce Stress Load Spiritual Pursuits You Want to Travel Family/Children To Reduce Personal Financial Risk! Others? Internal Factors The Company Life Cycle Organizational Issues Operations Problems Facilities Problems Financial Problems Intellectual Property Others? External Factors Economic Conditions Lending Climate Interest Rates Industry Trends Tax Rates Buyer Offer Others? Factors that Can Influence the Decision to Sell ALPHA OMEGA CAPITAL PARTNERS Understanding Our Circumstances (Factors) Do I Have Enough Money?
22. ALPHA OMEGA CAPITAL PARTNERS Timing of the Sale Sell?
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26. Succession Issues ~80% Want Family <10% Transfer To Family Kids Aren’t Interested Kids Aren’t Qualified Money Needed For Retirement Reality Check ALPHA OMEGA CAPITAL PARTNERS Considerations Before Selling You Want to Keep the Business in the Family
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28. ALPHA OMEGA CAPITAL PARTNERS Considerations Before Selling Fear of Change Reading List Dead End Choices About Attitude! Bad Things Often Happen When We Fail To Take Action! A Job Is Not A Life Sentence!
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30. Why To Create a Decision Making Environment of Emotive-Logic Designed To Minimize Risk Considerations Before Selling ALPHA OMEGA CAPITAL PARTNERS Logical Decisions Based On Emotional Objectives Benefits of an ‘Advisory Board’
31. Investment Banker Attorney Accountant CFA Corporate Structure Intellectual Property Tax Consequences Short-Term Long-Term Personal Trusts/Planning Investments Insurance Issues Annual Tax Work Short-Term Tax Plan Accounting Methods Market Value of Business Strategic Business Plan Value Mentoring Exit Strategies ALPHA OMEGA CAPITAL PARTNERS Considerations Before Selling Benefits of an ‘Advisory Planning Board’ Others?
32. Considerations Before Selling Maslow’s Hierarchy of Needs- “An Idealistic View” Understanding Our Needs Determining How Much Is Enough? ALPHA OMEGA CAPITAL PARTNERS
33. Physiological Needs = Fixed Cost Food, Water, Shelter Health Care Expenses Assisted Living Expenses Considerations Before Selling Needs Converted to Financial Reality ALPHA OMEGA CAPITAL PARTNERS
34. Fixed Cost Safety Cost (Needs) = Financial Cushion Property Insurance Health Insurance Financial Cushion Cash Reserves “ To Protect Fixed Cost Issues” Considerations Before Selling ALPHA OMEGA CAPITAL PARTNERS Needs Converted to Financial Reality
35. Fixed Cost Financial Cushion Clubs Faith Family Charity Legacy Education Love & Belonging = Feel Good Cost Considerations Before Selling ALPHA OMEGA CAPITAL PARTNERS Needs Converted to Financial Reality
36. Fixed Cost Financial Cushion Best & Biggest Feel Good Cost Esteem (Discuss) Considerations Before Selling ALPHA OMEGA CAPITAL PARTNERS Needs Converted to Financial Reality
37. Fixed Cost Financial Cushion Feel Good Cost Esteem Cost Actualization Cost Pursuing Your Dreams Considerations Before Selling ALPHA OMEGA CAPITAL PARTNERS Needs Converted to Financial Reality
38. Financial Cushion Considerations Before Selling ALPHA OMEGA CAPITAL PARTNERS Needs Converted to Financial Reality Fixed Cost Feel Good Cost Esteem Cost Dream Cost Pursuing Your Dreams Best Biggest Clubs Faith Family Charity Legacy Insurance Security Financial Cushion Food, Water, Shelter Health Care Expenses Assisted Living Expenses
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40. Considerations Before Selling ALPHA OMEGA CAPITAL PARTNERS *Distribution Yield Estimates March 2006 Per Leonard Levitch of Kasch, Levitch, McAleer, & Associates Decision Rules and Maximum Initial Withdrawal Rates by Johathan Guyton – Journal of Financial Planning – March 2006 How Much ‘Per Year’ is Enough Amount Invested Low Risk 4.0%* Medium Risk 5.0%* High Risk 6.0%* $1,000,000 $40,000 $50,000 $60,000 $2,000,000 $80,000 $100,000 $120,000 $3,000,000 $120,000 $150,000 $180,000 $4,000,000 $160,000 $200,000 $240,000 $5,000,000 $200,000 $250,000 $300,000 $6,000,000 $240,000 $300,000 $360,000 $7,000,000 $280,000 $350,000 $420,000 $8,000,000 $320,000 $400,000 $480,000
41. Considerations Before Selling Per Lee Eisenberg ALPHA OMEGA CAPITAL PARTNERS How Much is Enough The Number by Lee Eisenberg (Bottom Line) To Be Here And Live Like This You Need $ Per Year COMFORTABLE Live one place, modest lifestyle but better than most, etc. $50,000 to $100,000 COMFORTABLE PLUS Occasional upgrades, mid-priced country club, small second home. $175,000 to $250,000 KIND OF RICH Like finer things, lives well, gives $ away, couple of nice houses. $350,000 to $500,000 RICH Spends weeks/months abroad, exclusive club, gated community, multiple homes, fractional jets, sets on boards. >$1,000,000
42. Planning Your Exit At Maximum Value Overview Part I: Valuation Methodology Part II: Considerations Before Selling Part III: Timing of the Sale Part IV: Value Maximization Part V: How To Sell Part VI: How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS
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44. S ELL AT M AX V ALUE? Liquidation Value GIVE UP? S ELL W HEN E VENTS D ICTATE? ALPHA OMEGA CAPITAL PARTNERS Timing of the Sale Company (Product Line) Life Cycle Stages TIME REVENUE 3) Cash Flow 1) Start-Up 2) Growth 4) Declining Value 5) Obsolescence
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46. Buy Time Gain Value Timing of the Sale Extending Life & GAINING Value ALPHA OMEGA CAPITAL PARTNERS $ Time
47. Timing of the Sale M&A Volume ALPHA OMEGA CAPITAL PARTNERS
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49. Timing of the Sale ALPHA OMEGA CAPITAL PARTNERS Macroeconomic Conditions – Weak Dollar Exchange Ratio: Chinese Yuan/1$
53. Timing of the Sale Macroeconomic & Political Conditions Geopolitical Events ALPHA OMEGA CAPITAL PARTNERS 9-11-01
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55. Prime rate forecast Source: the Financial Forecast Center Timing of the Sale Macroeconomic Indicators – Interest Rates ALPHA OMEGA CAPITAL PARTNERS
56. Timing of the Sale Cap Gains Tax Rate Issues ALPHA OMEGA CAPITAL PARTNERS When Should You Sell? Scheduled Increase To 20% in 2010!
57. Timing of the Sale State Tax Rate Issues ALPHA OMEGA CAPITAL PARTNERS
58. Timing of the Sale ALPHA OMEGA CAPITAL PARTNERS Buyer Trends
59. Buyer Type Effects Price & Deal Size Small Deals <$3 million Yield Lowest Multiples Minimums Sales >$10 million EBITDA >$1 million Deal >$5 million Large Deals & High Multiples (Prices) Timing of the Sale ALPHA OMEGA CAPITAL PARTNERS Foreign Strategic Public < 10 Strategic Private < 100 Private Equity Finance (a few hundred possible) Private Equity Purchase (a few thousand possible) Private Buyers (large number of individuals)
60. Timing of the Sale Example ~ Large Deal Selling Multiples ALPHA OMEGA CAPITAL PARTNERS
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67. Timing of the Sale Conditions In Your Industry/Buyer Type ~ Roll-Ups A Few Large Players Can Dominate M&A Transactions In the Short-Term ALPHA OMEGA CAPITAL PARTNERS 1999 – 2000 Cenveo acquired 73 of 158 companies or 46% of M&A printing transactions. 2005 – Cenveo acquired 2 of 52 companies or 4% of M&A printing transactions. 2005 – Consolidated Graphics acquired 4 of 52 or 8% and own over 70 printing companies in North America. Market Making
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69. Timing of the Sale Conditions In Your Industry ~ Global Trends ALPHA OMEGA CAPITAL PARTNERS 11/9/89 – The Fall of the Berlin Wall 5/22/90 – Windows 3.0 shipped 1991 – India abolished trade controls 8/9/95 – World Wide Web, Netscape, & Open Protocols – FTP, HTTP, SMTP, POP, TCP/IP, etc. Work Flow Software - EBay, Pay Pal Up-Loading – Apache, Linux Outsourcing – India & Y2K Off-shoring – 12/11/01 China joined the World Trade Organization Supply-Chaining: Wal-Mart, Dell In-sourcing: UPS & FEDEX (Toshiba, Ford) Informing – Collaboration: Google, Yahoo, MSN Steroids – Digital, Mobile, Personal & Virtual (Other Than War)
70. Timing of the Sale Conditions In Your Industry ~ Manufacturing ALPHA OMEGA CAPITAL PARTNERS Proprietary technology, perishable, infrastructure related, or defense Or Exit! Made In China!
71. Business to Business Timing of the Sale Conditions In Your Industry ~ Where Have They All Gone? ALPHA OMEGA CAPITAL PARTNERS Retail Fine Dining 80,000 Employees Eight Brands Outback Steakhouse Carrabba’s Roy’s Bonefish Grill Flemings Lee Roy Selmon’s Cheeseburger Paradise Paul Lee’s Out Sourcing Wal-Mart & Other Big Boxes Corporate Takeover of Family Markets Corporate Pressure to Mfg. Off-Shore Competitive Pressure to Out-Source
72. Our Workshop Objective: Planning Your Exit At Maximum Value Overview Part I: Valuation Methodology Part II: Considerations Before Selling Part III: Timing of the Sale Part IV: Value Maximization Part V: How To Sell Part VI: How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS
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75. Cause One Customer or Limited Customer Base Cause Out of Touch Cause Serving a Single Market Cause Not Reinvesting Systems Equipment Etc. Cause Limited Marketing Effort ALPHA OMEGA CAPITAL PARTNERS Value Maximization Dropping Market Share Customers Are Single Sourcing Customer Sold Lost On Price Need QC Cert. Quality Poor >Competition Economy E-Commerce Don’t Know Moved Offshore Customer’s Sales Off Excuses or Symptoms
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77. ALPHA OMEGA CAPITAL PARTNERS Value Maximization Typical Business Strategy It’s A Bloody Red Ocean Existing Products To New Customers Current Geographic Region New Geographic Region Advertising New Reps/Agents Direct Sales Same As Current Acquisitions New Products To Old Customers Product Development Acquisitions Licensing
78. Compete in existing market space, Beat the competition, Exploit existing demand, Make the value/cost trade-off, and Align the whole system of a company’s activities with its strategic choice of differentiation or low cost. Create uncontested market space, Make the competition irrelevant, Create & capture new demand, Break the value/cost trade-off, and Align the whole system of a company’s activities in pursuit of differentiation and low cost. ALPHA OMEGA CAPITAL PARTNERS - Blue Ocean Strategy by Kim & Mauborgne 2004 “ Bloody Red Ocean” “ Blue Ocean” Value Maximization Uncontested Market Space Business Strategy
79. ALPHA OMEGA CAPITAL PARTNERS Cut Everything That is Not Mission Critical Value Maximization Buy/Mfg. Off Shore Assembly Only Vertical Integration Mission Critical Only Uncontested Market Space Business Strategy Certifications & Culture Systems & Procedures Integrated Supply No Sacred Cows Product Development Licensing Acquisitions No Grandfathered Items Internet Productive Reps Direct No Sacred Cows Innovative Products Highest Quality Most Effective Route To Market Lowest Cost New And Existing Customers
80. ALPHA OMEGA CAPITAL PARTNERS Value Maximization You Don’t Risk Flying Without Feedback of Information Flight Plan Altimeter Compass Fuel Gauge Air Speed Indicator Oil Temp. Outside Temp. Tachometer Fuel Pressure
81. ALPHA OMEGA CAPITAL PARTNERS Value Maximization Don’t “Fly” Your Business Without Measurements Learning & Growth Objectives Measures Targets Business Processes Objectives Measures Targets Customer Objectives ~ Measures ~ Targets Vision & Strategy If You Don’t Measure, You Don’t Control! Financial Objectives ~ Measures ~ Targets
82. ALPHA OMEGA CAPITAL PARTNERS Value Maximization Leadership – Read It! Lead or get out of the way
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84. ALPHA OMEGA CAPITAL PARTNERS Supplier Problems? Value Maximization Declining Quality Limited (Uncertain) Supply Increasing Price Limited Negotiating Power DANGER SIGNS
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88. I’m Seymour, the Big Cheese! I AM the BUSINESS! Deduct 15% - 30% from the value. ALPHA OMEGA CAPITAL PARTNERS Value Maximization MGMT ISSUES: Limited Depth If the Seller is the source of ALL knowledge, what happens? VALUE REDUCED QUICK EXIT is UNLIKELY !
89. ALPHA OMEGA CAPITAL PARTNERS Every Key Person Should Have a CROSS-TRAINED BACKUP ! ‘ especially the owner’ Value Maximization MGMT ISSUES: Cross-Training (One Owner) Owner VP Finance VP Sales VP Operations Assistant Assistant Assistant Assistant
90. Value Maximization MGMT ISSUES: Age of Workforce Matters ALPHA OMEGA CAPITAL PARTNERS Does this trend affect the value of your business? Trying to pass this problem on to the next owner?
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96. Value Maximization ALPHA OMEGA CAPITAL PARTNERS Cost of Goods Sold (COGS) Analysis Example: Dropping or Unstable Earnings ~ Vague Financials
97. There are always alternative routes to market – Know Your Costs Value Maximization ALPHA OMEGA CAPITAL PARTNERS Dropping or Unstable Earnings ~ Vague Financials
98. What Do Those Executive Perks Cost?...............Can You Prove What You Make? Value Maximization ALPHA OMEGA CAPITAL PARTNERS Dropping or Unstable Earnings ~ Vague Financials
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105. Our Workshop Objective: Planning Your Exit At Maximum Value Overview Part I: Valuation Methodology Part II: Considerations Before Selling Part III: Timing of the Sale Part IV: Value Maximization Part V: The Selling Process Part VI: How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS
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107. Propose Marketing Plan Financial Analysis & Valuation Initial Consultation & Execute Listing Agreement Prepare Descriptive Offering Memorandum Screen Buyers & Coordinate Offer Implement Marketing Plan Due Diligence & Arrange Financing 1 2 4 5 6 8 3 7 Client Decides to Proceed or Retainer Refunded ALPHA OMEGA CAPITAL PARTNERS The AOCP Selling Process ~ Duration: Six to Twelve Months ~
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114. Propose Marketing Plan 1 Week Financial Analysis & Valuation 2-3 Weeks Initial Consultation & Execute Listing Agreement Prepare Descriptive Offering Memorandum 3-4 Weeks Screen Buyers & Coordinate Offers 6-26 Weeks Implement Marketing Plan 2 Weeks Due Diligence & Arrange Financing 8-12 Weeks 1 2 4 5 6 8 3 7 Client Decision Proceed or Retainer Refunded End of Week #4 Latest ALPHA OMEGA CAPITAL PARTNERS The AOCP Selling Process ~ Six to Twelve Months ~
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117. ALPHA OMEGA CAPITAL PARTNERS Void Agreement Return Retainer Establish Value Market & Sell Value Mentoring The Selling Process Value Too Low Value Acceptable Sign & Pay Retainer Decide! AOCP Value Coaching to Maximize Value
118. Propose Marketing Plan 1 Week Financial Analysis & Valuation 2-3 Weeks Initial Consultation & Execute Listing Agreement Prepare Descriptive Offering Memorandum 3-4 Weeks Screen Buyers & Coordinate Offers 6-26 Weeks Implement Marketing Plan 2 Weeks Due Diligence & Arrange Financing 8-12 Weeks 1 2 4 5 6 8 3 7 Client Decision Proceed or Retainer Refunded End of Week #4 Latest ALPHA OMEGA CAPITAL PARTNERS The AOCP Selling Process ~ Six to Twelve Months ~
119. Domestic Competitors Complementary Markets Similar Foreign Markets Research PEG Objectives Proprietary Data Base Research Public Data Base Research Seller Suggestions Internet Research ALPHA OMEGA CAPITAL PARTNERS Marketing Planning ~ Buyer Search Process Capital IQ D&B Goldmine
120. Propose Marketing Plan 1 Week Financial Analysis & Valuation 2-3 Weeks Initial Consultation & Execute Listing Agreement Prepare Descriptive Offering Memorandum 3-4 Weeks Screen Buyers & Coordinate Offers 6-26 Weeks Implement Marketing Plan 2 Weeks Due Diligence & Arrange Financing 8-12 Weeks 1 2 4 5 6 8 3 7 Client Decision Proceed or Retainer Refunded End of Week #4 Latest ALPHA OMEGA CAPITAL PARTNERS The AOCP Selling Process ~ Six to Twelve Months ~
123. The Selling Process ALPHA OMEGA CAPITAL PARTNERS Our Electronic Approach Allows For Extensive Use Of Graphics After execution of a rigid NDA, every OM is accessible at the Client Log-In porthole of our website using a unique, encrypted password. Every OM includes a section with: Unadjusted Financial History, Common Size & Benchmarking, Adjusted Cash Flow, and Other Sections as needed. The Offering Memorandum
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125. Propose Marketing Plan 1 Week Financial Analysis & Valuation 2-3 Weeks Initial Consultation & Execute Listing Agreement Prepare Descriptive Offering Memorandum 3-4 Weeks Screen Buyers & Coordinate Offers 6-26 Weeks Implement Marketing Plan 2 Weeks Due Diligence & Arrange Financing 8-12 Weeks 1 2 4 5 6 8 3 7 Client Decision Proceed or Retainer Refunded End of Week #4 Latest ALPHA OMEGA CAPITAL PARTNERS The AOCP Selling Process ~ Six to Twelve Months ~
126. We Can Use Phased Marketing To Reach The Right Buyer At The Right Time To Maximize Value! Direct Mail To Strategic Buyers Telephonic Follow Up Direct Mail & Email To Financial Buyers (Private Equity Groups) Telephonic Follow Up Internet Advertising For High Net Worth Job Seeking Buyers Screening & Coordination Of Buyers ALPHA OMEGA CAPITAL PARTNERS The ‘Phased Marketing’ Option
127. Propose Marketing Plan 1 Week Financial Analysis & Valuation 2-3 Weeks Initial Consultation & Execute Listing Agreement Prepare Descriptive Offering Memorandum 3-4 Weeks Screen Buyers & Coordinate Offers 6-26 Weeks Implement Marketing Plan 2 Weeks Due Diligence & Arrange Financing 8-12 Weeks 1 2 4 5 6 8 3 7 Client Decision Proceed or Retainer Refunded End of Week #4 Latest ALPHA OMEGA CAPITAL PARTNERS The AOCP Selling Process ~ Six to Twelve Months ~
128. “ A Value Differentiator” ALPHA OMEGA CAPITAL PARTNERS The Selling Process Our Approach is Different We Provide Monthly or Weekly Reports- at the Sellers Discretion Buyer Name And/or Company Buyer Status Pending FU
129. Propose Marketing Plan 1 Week Financial Analysis & Valuation 2-3 Weeks Initial Consultation & Execute Listing Agreement Prepare Descriptive Offering Memorandum 3-4 Weeks Screen Buyers & Coordinate Offers 6-26 Weeks Implement Marketing Plan 2 Weeks Electronic Due Diligence & Arrange Financing 8-12 Weeks 1 2 4 5 6 8 3 7 Client Decision Proceed or Retainer Refunded End of Week #4 Latest ALPHA OMEGA CAPITAL PARTNERS The AOCP Selling Process ~ Six to Twelve Months ~
130. Our Approach is Different! Arrange Financing Appraisal Buyer Agreement Seller Agreement Need A Seller Note? “ We Are The Deal Management Police” The Selling Process Coordinating Due Diligence & Financing ALPHA OMEGA CAPITAL PARTNERS Due Diligence Meetings
131. Our Workshop Objective: Planning Your Exit At Maximum Value Overview Part I: Valuation Methodology Part II: Considerations Before Selling Part III: Timing of the Sale Part IV: Value Maximization Part V: The Selling Process Part VI: How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS
132. What Is Your Definition of Deal Value? How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS
133. Deal Value Is Not Selling Price! Deal Value Equals The Present Value of the Real Dollars Realized After Adjustments, Taxes and Fees! What Is Deal Value? How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS
134. External Discount Factors – Terms of Sale How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Terms Price Parity
135. External Discount Factors – Terms of Sale How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Notes Earn-Outs Escrows Guarantees Allocations No Debt Working Capital A Flexible Seller Gets A Higher Price Accept More Risk > Price
136. External Discount Factors – Terms of Sale How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS All Cash Walk Away Closing No Escrows No Guarantees Favorable Allocations Debt Assumption No Working Capital Price Drops As Buyer Risk Increases Dictate Terms < Price
137. External Discount Factors – Terms of Sale How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS DEFINITIVE SALE AGREEMENT Notes Earn-Outs Consulting Employment Real Estate Indemnifications Escrow Guarantees Allocations Debt Working Cap Commissions Taxes Legal Fees Non-Compete
138. Terms of Sale - Notes How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Typical Historic Structure 1/3, 1/3, 1/3 Buyer Equity, Bank Equity, Seller Note Typical Seller Note Terms: 10 year amortization 5 year balloon Floating rate 1 – 2 points > Prime Security – 2 nd lien + personal guarantee
139. Terms of Sale – Earn Outs How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Uncertain trends, or Buyer/Seller disagree on value Typical Terms: 3 years ≥ 50% guaranteed ≤ 50% based on performance Tagged to Revenues or EBITDA
140. Terms of Sale – Employment How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Often coupled with Earn-Out, or PEG Buyer Typical Terms: Salary + Benefits Bonuses based on performance Stock options and/or gifts Employment agreement
141. Terms of Sale – Consulting How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Actual work varies Zero time to a few months Typical Terms: Daily, hourly, weekly Allocated from selling price Buyer writes off as paid Formal agreement
142. Terms of Sale – Non Compete How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Must be limited to be enforceable; Geographically, by product type, by customer Typical Terms: 3 – 7 years Allocated from selling price Amortization = 7 years Formal agreement
143. Terms of Sale – Indemnifications How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Stock versus Asset Transaction Prior acts: Products, Employees, Environmental, Tax May require Escrows or Guarantees!
144. Terms of Sale – Allocations How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Of Purchase Price to BS Items Accounts Receivable Inventory Fixed Assets Goodwill Tax Allocations greater than book value result in recapture of expense & taxation at income rates.
145. Terms of Sale – Debt How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Stock versus Asset Transaction Stock Transaction: Buyer Assumes Debt + Other Consideration Transaction Value to Seller Asset or Stock Transaction: Full Enterprise Value w/o Debt - Seller debt payoff Net to Seller ¹ ¹ Seller sometimes keeps cash, AR & payable
146. Your debt coverage ratio ≤ 133%. (most lenders require 125%) Internal return from debt ≥ alternative uses. When selling, less debt is better. (Transaction Value = market value less debt) Final Thoughts ALPHA OMEGA CAPITAL PARTNERS Your Balance Sheet - Debt
147. Terms of Sale – Working Capital Adjustments How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS Asset Sale Cash usually excluded AR may be excluded Inventory acquired at cost Stock Sale Current Assets = 2 times Current Liabilities Price adjusted up/down at closing.
148. How Much You Really Get ALPHA OMEGA CAPITAL PARTNERS How Legal Structure Affects Taxes of a C-Corp C Corps are taxed as separate legal entities and have there own tax schedules, different from individuals’. C Corps must pay taxes first before distributing profits (Dividends) to shareholders. How to sell the Assets Sale of a C-Corp Without Double Taxation? Call AOCP. How Legal Structure Affects Taxes of a Sub S Corporation A Sub S corporation is a corporation which elects subchapter S tax treatment under the IRS’s Internal Revenue Code. This allows the corporation’s profits or losses to pass through to the shareholders and avoid double taxation.
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150. 7202 Glen Forest Drive Ste 300 Richmond, VA 23226 Voice: 804.282.7680 www.aocp.com Thank You
Editor's Notes
WELCOME I am Tony Vincent, President & Founder of AOCP. Introduce others in the room. Our job is to sell privately owned mid-market companies at maximum value. Depending on your time table, we’ll show you that this can mean selling at a deep discount compared to potential value; or It can mean selling at the highest price possible compared to your peer companies. B/F I go on, I’d like to explain the schedule for the workshop. Note that I said, Workshop. There will be exercises for each section of the presentation to help you focus what you are learning on your business. Rest Rooms Breaks Questions – after each topic, there we will take questions.