Welcome to Today’s Webinar:Prepare & Position your Company for

Sale

QuestionsGround Rules

• Attendees are in listen-only mode• This webinar is being recorded for future on-demand playback• Your participation represents acknowledgement that we are recording• Tweet questions & comments to: #Wplanahead

Windows Mac Tablet

Candace Enman, CPA, CAPresident, WelchGroup Consultingcenman@w-group.comwww.w-group.comTwitter: @welchgroupca.linkedin.com/in/candaceenman/

Presenters

Sandra HarveyPresident|Broker, Murphy Business Ottawas.harvey@murphybusiness.cahttp://www.murphybusiness.com/ottawaTwitter: @sellottawabizca.linkedin.com/in/sandraharvey

“Build your business to last decades, but be prepared to sell it

tomorrow”

Proactive Thinking

Why do you want to sell? • Retirement• Health reasons• Offer• Hot market (sales activity)• Serial entrepreneur

Preparation

What is important to you?• Sales price• Transition structure (earn out, up

front cash) • Business legacy/continuity of

employment for employees

Should I engage Advisors?• Options• Valuation/Pricing• Tax & legal issues• Negotiation

Value & Business Drivers: Define Value

Operational Drivers Market Drivers

Identify Business Drivers

Processes are interrelated (gears inside an engine) Sales & Marketing Operations Human Resources Financial Reporting Processes Infrastructure Legal Intellectual Property

Assess Business Drivers

Think Like The Buyer – What are they looking for?• What is their motivation?• What do they want to see?

Think Like a Buyer: Maximize Value & Marketability

What are you bringing to the negotiation table?• Internal and external assessment of the business• Bargain with your strengths and your weaknesses • Turn weaknesses into opportunities• Be honest and upfront with your disclosures

• Succinct marketing story • Business profile• Financial analysis• Operational analysis

1.“Do it all” Business Owner

2.No Strategic Direction

3.Talent management

Clear Obstacles to a Sale

• Industry analysis Opportunities, trends, regulations & success factors

• Sales & marketing Customer base; customer contracts Pipeline Distribution channels, market penetration Competitors & market share

• Operations Capacity Bottlenecks Quality controls

Due Diligence: Operational Review & Analysis

• Human Resources Employee analysis Management team Employment contracts Culture

• Administration Company background Policies & procedures Copies of leases, contracts, minutes, legal records, tax returns Strategic plan

Operational Review & Analysis

Externally prepared financial statements + adjusting journal entries Internally prepared financial statements

YTD divisional reporting YTD project reporting

Aged Accounts Receivable and Payable sub-ledgers Fixed asset schedules Documentation on Information Systems Trend analysis

Sales growth Gross margin Profit growth

Budgets, projections

Financial Review & Analysis

CoreValue Diagnostic

CoreValue Diagnostic

Help you stop fighting fires in your companies and focus on what is important.

Identify potential gaps that you can manage proactively.

Help you build your marketing story before you sell.

Respond to information requests in a due diligence process quickly to gain the trust of a buyer.

Prepare & position your company for sale.

1. Value Proposition

2. Time and Timing

3. Not following the right process; owner selling solo

4. Weak due diligence package/poor records

5. Limited marketing outreach

Successful Exits: Top 5 Barriers to Success

Pre-plan for maximized value: Personal and Business

Positioning Your Company for Sale

Goals and requirements

Operational Processes

Key managers and employees

Leases and Location Pricing for your market

Assemble the right team

Trends and Timing

Lower the risk = the greater the value

Due Diligence Checklist

No Surprise!

The Best Surprise is...

Candace Enman, CPA, CAPresident, WelchGroup Consultingcenman@w-group.comwww.w-group.comTwitter: @welchgroupca.linkedin.com/in/candaceenman/

Q & A

Sandra HarveyPresident|Broker, Murphy Business Ottawas.harvey@murphybusiness.cahttp://www.murphybusiness.com/ottawaTwitter: @sellottawabizca.linkedin.com/in/sandraharvey

Tweet questions & comments to: #Wplanahead