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Taras ServicesLtd

MatteoTuri FCCA,ManagingPartner

ExpertsinBusinessPlan|Accounting|GrowthCapital|Franchising|Exit

“WESCALEUPYOURBUSINESSTOACHIEVEPROFITONEXIT”

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Scaleup yourbusinesstoachieveprofitonexit- Summary

SectionA– Ourapproachtofinance&ourrecent successes

SectionB– 3commonbusinessfailures,3waystogrowyourbusiness&3businessvaluationmethods

SectionC– Ourpartnerships

SectionD– Ouradvisoryapproach:15questions toanswer forsuccessfulgrowthstrategies

SectionE– Fundingsolutionsforstartups

SectionF– Exitplanandhowtomaximize value

SectionG– Franchising andhowtomaximize value

SectionH– The4componentsofsuccess

Section I- OurCFO&accountingservice combined

Section J– Q&A

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SectionA– Ourapproachtofinance

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Taras CFOServices- Bean countersorbeangrowers?

Beancounting isneededtoestablishfinancialpositionofthebusiness.Thisisaroleusuallyperformedbyabook-keeper/financialaccountantandisvitaltothebusiness.

Beangrowingisneededtosustainablygrowthebusiness.ThisroleisperformedbyaCFO

BOTHARENEEDEDFORSUCCESS!

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Taras ServicesLtd– Recentsuccesses

q 85millionEurosrefinancinginthewatersectorfora20yearCapitaldevelopmentprogram

q 27millionEurosnewfreecashflowcreatedwithrefinancing

q 40millionEurosinvestments innaturalresources in6countries

qMajorturnaround,acquisitionsandIPOexitplanexecuted intelecom(£20millionraising),professional services (EBITfrom1%to7%)andfinancialservices (15millioneurosacquisitionfromUSAofItaliancompany)

q Duediligenceandpricenegotiationonexitsandacquisition

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SectionB–3commonbusinessfailures3waystogrowyourbusiness3businessvaluationmethods

Taras CFOServices– 3commonbusinessfailures

1)No fundingforgrowth

2)Noexitplan&lowvalue

3)Earlyclosure ofbusiness

Taras CFOServices– 3commonbusinessfailures

Taras CFOServices– 3waystogrowabusiness

1020

30

50

70

100

150

1 -2 -6 -8-20

10

40

Year1 Year2 Year3 Year4 Year5 Year6 Year7

SalesCashflow

1020

30

50

70

100

150

1 2 510

2030

50

Year1 Year2 Year3 Year4 Year5 Year6 Year7

2.Withfinancesupport

10

2530

50

7080

90

110

40

80

120

150

200

Year1 Year2 Year3 Year4 Year5 Year6 Year7

3.Withfranchising

1.Nofinancesupport

Weaimforsustainablegrowth&financialsuccess

LOWVALUEEXIT

FAIRVALUEEXIT

HIGHVALUEEXIT

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Discounted cashflow

Net assetvalue

Guidelines companyanalysis

Taras CFOServices– 3ways tovalueabusiness

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SectionC – Ourpartnerships

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SUMMARY– TARASNETWORK

Taras ServicesLtd

Advisory,Franchising,Acquisition

Internationalgrowth&

exit

Productstradingacross12countries

Taras CFOServices– Our3partnerships

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SectionD – Ouradvisoryapproach&15questions

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ADVISORY – 15QUESTIONSWEADDRESS

1) I currently have a specific plan in place right now to grow and develop my business2) I know the current value of my business

3) I understand how franchising could potentially be of value to the growth of my business

4) I am the highest paid person in my business for the amount of time I spend there5) I currently spend too much time in the day to day running of my business6) I'd like to spend more time working on the future growth and expansion of my business

7) I find it difficult to find, keep and motivate my staff

8) I have a documented plan to exit my business with a timeline9) The business would suffer/decline if I was absent from it for an extended period of time10) I'd like to find out more about how I can increase the value of my business

11) I have properly documented procedures for my Business12) I have CRM systems interlink to exchange and store all client data

13) I review the individual & joint performance of my team with them on a regular basis14) I work on my overall business strategy for a minimum of 5 hours a week

15) I have held a staff training day in the last 12 months

Taras CFOServices– OurAdvisoryapproach

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SectionE – Fundingsolutionsforstart-ups

1.Goodsshipped

2.Goodsarrive

3. Clientacceptsgoods

4.Invoice toclient

5.Cashcollectedfromclient

Trade financingadvancepaymenttosupplier

Invoicefinancingadvancereceipt

Invoicebalancereceived.Position isclosed

Taras CFOServices– howwefundgrowthinstartups

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SectionF – Exitplan&howtomaximizeyourvalue

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Taras CFOServices– the3Exit phases

1.Valuationassessment

2.Preparation>12 months

3.Execution>6months

Feestructure:- Amonthlyadvisory fee- Asuccess feeonexecution.Typically 15-20%ofthevalueadded

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Taras CFOServices– how toaddvalueonexit:internationalization

q Thebuyerwillpayyouapremium ifyouhaveinternational presence

q Opening tonewmarketswillautomatically addvalue toyourbusinessvalue

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Taras CFOServices– how toaddvalueonexit:SuccessionPlanning

q Thebusinessmustfunctionwithoutyou

q Succession planningwillensure therightvalueonexit

q Early successionplanningwillensuresuccess

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q Higher cashgeneration

q Internationalization ofbusiness

q Turnkeysolution forbuyers

Taras CFOServices– howtoaddvalueonexit:Franchising

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SectionG – Franchising&howtomaximizeyourvalue

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Taras CFOServices– Franchisingyour business

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Taras CFOServices– the8phases

1. Theopportunity

2.OperationsManual

3.Contracts

4.Franchisepackage

5.Franchise recruitment

6.Franchisetraining

7.Launch franchisebusiness

8. Controlledgrowth&support

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Taras CFOServices– theexecutionofthe8phases

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Taras CFOServices– the3levelsoffranchisingadoption

Earlyadopterslow licence price

Mediumadoptershigherlicenceprice

Mature adoptershighestlicenceprice

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Taras CFOServices– the4winnersinfranchising

GDPincrease

2.Franchisee

1.Bank

4.Taras

3.Franchisor Bankslendswith

lowrisk

Enterpreneurs acquire asafebusiness

Client increase businessvalueandcashflow

Withourpartnersweaddvalue totheclient

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SectionH– The4componentsofsuccess

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Performance Control

ProcessPeople

Assurance, insurance, contracts, compliance

Transactions, IT, systems

Tax, budgeting, reporting,treasury

Recruitment, development, performance, succession

Taras CFO Services– the4componentsofsuccess

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SECTION C:THEBALANCEDSCORECARDAPPROACH

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Taras CFO Services– Performance

qTaxplanning

qFinancialanalysis

qMargin&costcontrol

qFinancialplanning

qCashmanagement

Eachareofperformance isanalyzedasfollows:

1) Summaryofobjectives2) Owner3) Frequencyofmeasurement4) Measure5) Baseline6) Target7) RedAmberGreenstatus8) Commentary

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Taras CFO Services:Control

qAssurancemap

qInsuranceprogram

qContractmanagement

qERM

qAccountingpolicies

qTaxcompliance

Eachareaofcontrolisanalyzedasfollows:

1) Summaryofobjectives2) Owner3) Frequencyofmeasurement4) Measure5) Baseline6) Target7) RedAmberGreenstatus8) Commentary

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Taras CFOServices:People

qRecruitment

qLearning&development

qSuccessionplanning

qPerformancemanagement

Eachareaofcontrolisanalyzedasfollows:

1) Summaryofobjectives2) Owner3) Frequencyofmeasurement4) Measure5) Baseline6) Target7) RedAmberGreenstatus8) Commentary

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Taras CFOServices:Processes

qFinancialReporting

qFinancial systems

qInformationmanagement

qTransaction processing

qProcessestofranchiseyourbusiness

Eachareaofcontrolisanalyzedasfollows:

1) Summaryofobjectives2) Owner3) Frequencyofmeasurement4) Measure5) Baseline6) Target7) RedAmberGreenstatus8) Commentary

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SectionI– OurCFO&accountingservicescombined

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Taras CFOServices:OurCFO&accountingservicesCost(Monthly)

AnnualTurnoverbands >£50k<£200k >£200k<£500k >£500k<£1m >£1m<£2m >£2m<£5m >£5m<£10mPerformance Service

TaxPlanning Accounting £40 £75 £150 £165 £325 £575FinancialAnalysis CFO £575Margin&costcontrol CFO £165 £325 £575FinancialPlanning CFO £165 £325 £575CashManagement CFO £165 £325 £575

Control

AssuranceMap CFOInsuranceProgram CFOContractManagement CFOEnterpriseRiskManagement CFOAccountingpolicies CFO £165 £325 £575Taxcompliance Accounting £40 £75 £150 £165 £325 £575

People

Recruitment CFOLearning&development CFOPerformancemanagement CFO £325 £575Successionplanning CFO

Process

Transactionprocessing Accounting £40 £75 £150 £165 £325 £575Informationmanagement CFOFinancialsystems Accounting £40 £75 £150 £165 £325 £575Financialreporting Accounting £40 £75 £150 £165 £325 £575Totalmonthlyfees £200 £375 £750 £1,485 £3,250 £6,325

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SectionJ – Questions&answers

CONTACT US

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Managing Partner : Matteo Turi

Financial Accountant: Urszula Baker

Trading address : 207 Regent Street W1B 3HH

Tel. +44/(0) 20 32 87 10 55Tel. +44/(0) 20 32 87 10 44

E: mt@taras-financial.co.ukinfo@taras-financial.co.uk