Maximizing Value in Selling Your Private Business: Key Strategies and Insights

1. ‘Selling a private business for its Maximum Value’

2. BCMS Corporate • Established 1987 • 152 projects last year • Negotiative dialogue with 50,000 co’s/annum • Unique data resource – 50+ million companies • Large and highly skilled team of 170 staff • International

3. Two Sessions • Important observations • Finding the right buyer

4. Some important observations • People usually sell for 4 reasons • Lifestyle change • Entrepreneurs vs managers • Time • Co. growth Session 1 -Observations

5. £ Time Session 1 - Observations

6. £ Investment Time Session 1 - Observations

7. £ Investment Time Session 1 - Observations

8. £ Investment Time Session 1 - Observations

9. £ Investment Time Session 1 - Observations

10. Some important observations • Avoid passivity at all costs • There are many motivations to purchase Session 1 - Observations

11. Motivations for purchase include: • client base • potential growth • globalisation / regionalisation • the ability to generate cash • developed products / services • patents & IPR • operational or financial synergies • a skilled workforce • profitability / return on investment Session 1 - Observations

12. Some important observations • Avoid passivity at all costs • There are many motivations to purchase • Choice is king Session 1 - Observations

13. Choice affects: • the speed of the sale • the negotiation of terms • the price Session 1 - Observations

14. Some important observations • Avoid passivity at all costs • There are many motivations to purchase • Choice is king • Sell future potential Session 1 - Observations

15. Sell the future Nobody buys a company’s history 5/8 Acquisition Musts Always produce ‘Synergy’ Bus. Plan Session 1 - Observations

16. Sell the future • This is totally unreasonable • Choice is the key • 5/8 Acquisition musts • Inevitably neglected • Enables first offer rejection Session 1 - Observations

17. The 5 stages of finding a buyer • Company & Product Brief • Desk Research • Prospect Generation • Qualification • Concluding the Deal Session 2 – Finding the right buyers

18. 230 25 3 Session 2 – Finding the right buyers

19. 230 25 Dry Run 5-7 Exploratory Meetings 4-6 Price Discussions 3 Session 2 – Finding the right buyers

20. NameO/P ATOffer-Sale Price • Traffic Products £378K £1.0M £6.4M • Building Contractor £253K £2.0M £2.7M • Energy Efficiency £100K £1.0M £4.0M • Waste Management £434K £3.0M £19.1M • Tool Maker Company £607K £4.0M £5.4M • Consultancy Company £244K £3.5M £6.0M • Courier Company £171K £3.0M £4.65M • Pet Supplies (£100K) £200K £4.2M • Technology Supplies £321K £2.4M £4.75M • Travel Management £386K £2.97M £7.0M • Events Management £253K £0.95M £3.53M • Wholesale Company £168K £0.75M £2.5M • IT Development Integration £434K £5.0M £14.1M

21. ‘Selling a private business for its Maximum Value’