Grooming for Exit Part 1

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What is Grooming and why should you care? In Part 1 of this Four Part Series The Rudder Group explains that grooming your business will result in a higher valuation and a quicker process when you sell your business.

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Grooming for Exit Part 1

  1. 1. GROOMING FOR EXIT PART 1WHAT IS GROOMING? Mike Rogers Managing Partner The Rudder Group Growth Strategies & Mentor Capital
  2. 2. GROOMING FOR EXITThis presentation is designed to help shareholders addvalue to business through a structured grooming process,gauge the right time to consider an exit, identify mostappropriate exit route, and ensure they achieve best dealfor themselves, their staff, and company itself. The Rudder Group Growth Strategies & Mentor Capital
  3. 3. THE GROOMING PROCESS• Primary objective: help build a business capable of achieving a chosen exit route within a preferred timescale on the best available terms• For private SMB technology companies: shaping business to look like one a purchaser will pay a premium price to acquire The Rudder Group Growth Strategies & Mentor Capital
  4. 4. SO WHAT IS GROOMING?• Implement positive actions to accelerate revenue growth and increase profits• Identify characteristics that might thwart or reduce the value of the future sale of the business• Know the steps that a potential acquirer would take post acquisition to know your company’s valueBy grooming the business, the saleshould be achieved quicker and at ahigher valuation. The Rudder Group Growth Strategies & Mentor Capital
  5. 5. 99% OF PRIVATE TECHNOLOGY COMPANIES ARE ACQUIRED• Design the company to be acquired from the start• Build something that fills a need for one of the big tech companies for the least amount of money• Smaller means nimble and fast• Making it to an IPO is a remote probability The Rudder Group Growth Strategies & Mentor Capital
  6. 6. CONTINUOUSLY GROOM YOUR BUSINESSIF YOU’RE NOT CONSTANTLY "GROOMING” THE BUSINESS TOBE SOLD, THEN YOU HAVE ALREADY SOLD IT… TO YOURSELF! • Drive business direction • Lock strategy into place • Ensure implementation by incentivizing management • Stay on track throughout grooming timescale The Rudder Group Growth Strategies & Mentor Capital
  7. 7. THE GROOMING FOR EXIT SERIES• Part 2: When to Begin• Part 3: What to Do• Part 4: Implementation The Rudder Group Growth Strategies & Mentor Capital
  8. 8. GROWTH STRATEGIES & MENTOR CAPITAL THE RUDDER GROUP ACCELERATES OUR CLIENTS: • Time To Market • Time To Revenue • Time To Positive Cash Flow • Time To ExitTwitter.com/TheRudderGroup Download the PresentationLinkedIn.com/TheRudderGroupFacebook.com/TheRudderGroup www.theruddergroup.com The Rudder Group Growth Strategies & Mentor Capital

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