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Welcome to Today’s Webinar: Prepare & Position your Company for Sale
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 [email protected]: @welchgroupca.linkedin.com/in/candaceenman/
Presenters
Sandra HarveyPresident|Broker, Murphy Business [email protected]://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 [email protected]: @welchgroupca.linkedin.com/in/candaceenman/
Q & A
Sandra HarveyPresident|Broker, Murphy Business [email protected]://www.murphybusiness.com/ottawaTwitter: @sellottawabizca.linkedin.com/in/sandraharvey
Tweet questions & comments to: #Wplanahead
