Getting a Great Sale Price for Your Company
16
Getting a Great Sale Price for Your Company Mark Ostryn www.strategiccompanysales.com 02 9982 7151
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Full video presentation available at strategiccompanysales.comIn this video presentation, Mark Ostryn from Strategic Company Sales (strategiccompanysales.com) a Sydney based business broker discusses the key methods for maximising the sale value of a company. In it he covers key strategies and profiles of optimum buyers including:• If your buyer is in the same industry as yours, they get to neutralise a competitor, and consequently gain market share.• Interstate or overseas buyers may see purchasing your company as a means to expanding geographically.• The buyers company may also obtain cost benefits either through greater buying power with suppliers or reducing their own overhead. They may not need two accounts teams, field sales forces or receptionists.• If your company has a good management team, growing earnings, operates in an expanding market and is not dependent on you, the owner for its future success, this can only enhance value.• Finally, by acquiring your company, the buyer can enjoy the benefits of vertical integration
Transcript of Getting a Great Sale Price for Your Company
Strategies for
Getting a Great Sale Price for Your Company
Mark Ostrynwww.strategiccompanysales.com02 9982 7151
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Value Enhancers
Value Chain
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Strategic Sale
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Strategise Potential
Build Value & Target Buyers
Develop Competiti
ve Tension
Transact Effectivel
y
Transition Smoothly
Strategic Company Sales
Appoint Advisors
Agree Strategy
Solicit Interest Outboun
d Marketin
g
Direct Approac
hesQualify Interest
One Page Teaser
Confidentiality
Agreement
Information
Memorandum
Meetings with Owner
Negotiation & Non Binding
Offer
Finalise Preparation of Data
Room
Buyer Due Diligence
Vendor Due
Diligence on Buyer
Binding Offer
Submission &
Acceptance
Other Financial &
Legal Agreement
s
Deal Close & Payment
START
FINISH
FINANCIAL, LEGAL, INSURANCE, SALES AGENT, COACH
CO-ORDINATE & PROJECT MANAGE WITH EXTERNAL TEAM & STAFF (?)
SELECTIVELY PUBLICISE & APPROACH KEY POTENTIAL BUYERS
BUYERS GOALS AND CAPACITY TO PURCHASE
KEY SELLING PROPOSITIONS
NDA TO INTERESTED PARTIES TO INCLUDE NON SOLICITATION
FULL COMPANY DETAILS & OPPORTUNITIES TO SERIOUS BIDDERS
COMPANY PRESENTATIONS & Q&A’S
BUYER OFFER - HEADS OF AGREEMENT / TERM SHEET - SUBJECT TO DUE DILIGENCE
RELEVANT COMPANY DOCUMENTS
ACCESS TO ALL INFORMATION ON SELLER / BUYER
SALES & PURCHASE AGREEMENT
NON COMPETE, EMPLOYEES AGREEMENT SHAREHOLDER AGREEMENTS ETC
Business Broker
(Ringleader)
Buyer
Insurance
Buyer’s Lawyer & Accounta
nt
Legal
Accounting &
Financial Planning
Property / Capital Sales
Why are you selling?
What are your plans after the
sale?
Why is your asking price reasonable?
How much do you really earn
from the business?
How has your business grown in recent years?
How will your business
transfer and run without
you?
Why will your customers
remain loyal?
What are the key risks to
your business?
What payment terms are you
open to?
Strategic
• Market & Competitive Position
• Future Opportunities & Threats
Financial
• Financial Statements
• Assets & Liabilities
• Taxes
Legal
• Contracts & Leases
• Intellectual Property
• Law Suits
Employees &
Suppliers
• Satisfaction & Retention
• Quality• Compensation
Other
• Systems & Technology
• Environment & Green Issues
DueDiligence
Deal Structure
Base Price
Vendor Finance
Earn Outs
Non Competes
Employment /
Director
Lease Back
Escrow / Staged
Payments
Strategic Company Sales (02) 9982 7151
