The Rudder Group Growth Strategies & Mentor Capital

GROOMING FOR EXIT

PART 1

WHAT IS GROOMING?

Mike Rogers

Managing Partner

The Rudder Group Growth Strategies & Mentor Capital

The Rudder Group Growth Strategies & Mentor Capital

GROOMING FOR EXIT

This presentation is designed to help shareholders add

value to business through a structured grooming process,

gauge the right time to consider an exit, identify most

appropriate exit route, and ensure they achieve best deal

for themselves, their staff, and company itself.

The Rudder Group Growth Strategies & Mentor Capital

The Rudder Group Growth Strategies & Mentor Capital

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

The Rudder Group Growth Strategies & Mentor Capital

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 value

By grooming the business, the sale should be achieved quicker and at a higher valuation.

The Rudder Group Growth Strategies & Mentor Capital

The Rudder Group Growth Strategies & Mentor Capital

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

The Rudder Group Growth Strategies & Mentor Capital

CONTINUOUSLY GROOM YOUR BUSINESS

• Drive business direction

• Lock strategy into place

• Ensure implementation by incentivizing management

• Stay on track throughout grooming timescale

IF YOU’RE NOT CONSTANTLY "GROOMING” THE BUSINESS TO BE SOLD, THEN YOU HAVE ALREADY SOLD IT… TO YOURSELF!

The Rudder Group Growth Strategies & Mentor Capital

The Rudder Group Growth Strategies & Mentor Capital

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

The Rudder Group Growth Strategies & Mentor Capital

THE RUDDER GROUP ACCELERATES OUR CLIENTS:

• Time To Market

• Time To Revenue

• Time To Positive Cash Flow

• Time To Exit

www.theruddergroup.com

GROWTH STRATEGIES & MENTOR CAPITAL

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