Graeme Read - 3R Resourcing

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Building Scaling Selling

BuildingScalingSelling

Graeme Read

BuildingBuild for purposeLifestyle OR Capital ValueWho shares your vision?Unify the team, the goal & purpose

PlanWhy, Where, What, Where, HowPlan High, Medium & Worst CaseGet a buddy, a critical friendBuildingDont be Unique!Be different, relevant, distinctiveMe Too & Generalists struggle for growthSpecialists, Niche or Micro niche - nimble799 firms started in 2014 - 86% niche

Manic or measured?Ideas come in at 100mphMania costs money, people & timeCorral your Ideas take 6 then pick 2BuildingDevelop your talentAre you a Driver, Leader, Coach or Manager Nurture & Mentor Leadership skills Culture Shock - Experienced & Apprentices Hire often, hire fast, hire more than 1 Follow Jim doesnt work Jims fees dipPerformance: Capability v History v AttitudeDo you develop your Top Performers?Scaling Your Business

ScalingInternational OR National?Deep Dive the opportunity & competitorsBandwidth in Team, Managers & YouOutsource non-essential functions eg payrollGet current, deep domain knowledge

Plan and plan againWhere, When and WhyDefine goals, objectives, and success metricsBest, Average, WorstTime to pay back?ScalingFinances & LegalsCashflow & Credit - dont run shortSet up tax & finance plans earlyHR rules, Salaries, Rewards DO differProfit repatriation plan?Subsidiary or Stand AloneLicences, RegulationsLocal support and partnersScalingPhysical or Virtual?Incubate first, get a Beachhead Team Localise earlyTravel often, stay longActively drive Referrals Countries, Clients, DisciplinesStrategic Alliances, JVs or Acquisitions?Selling Your Business

SellingPrepare earlyWho will buy it ?How sale-able is the business? Tax and Finance ReadinessLeadership ReadinessCapacity - You, Your team, Back officeM&A Impact on stakeholdersSellingOptions What suits you?MBI / MBOTrade sale Private EquityIPO / Public to PrivateStrategic MergerWheres the buyers 2014 investors in the UK sector:UK, Americas, Wider Asia, CEE & EuropeSellingTiming?Deal activity rose 9% in Q4 2014 BDO report shows 46% considering an acquisition in next 3 years41% expect to exit / sell in next 5 yearsWhen?Too earlyToo few buyers depressing pricesToo latePlan B if it doesnt happenSources: Internal, BDO Recruitment 2015 reportSellingUncertainty aboundsOil prices ElectionsBlack swans & unknown knownsMacro dynamics Greece Exit, China bubble?, EU risksInstabilityMid East & Putin effect

SellingValuation Ranges from 3.5X to 6X+ EBITDA (depending)Perm & ContractLeadership teamSynergiesComplianceConcentrations - RPO, ClientsPAYE / Umbrella legislationSellingOther factors:Bank debt / factoring affectYour involvementDont be greedyEquity: Over-reward V Under RewardOrphan divisions, half built officesTaking your eye off the ballSellingWHATS HOTHealthcare ConsolidationBig Data, AnalyticsDigital & MarketingEngineeringRPO, Training & Allied staffingOnline PlatformsFinance & AccountingExecutive Search

Sources: Internal, APSCo, Staffing Industry AnalystsSellingHow long?2014: Highest M&A volume in 5 years Organic growth is harder to get 7 year cycle ?2.5 years into a recoveryNext dip within 4.5 years?? who knowsBuyers began in 2013-14 Market remains active in 2015, 2016.. Reducing values as more seller arriveYour Partners in BusinessMentoringBoard Support Non ExecGraphic DesignMarketingSocial Media Corporate Communications Web DesignInterim CFO/FDFinancing MBO MBIMergers & AcquisitionsDue DiligenceStrategic Consulting Deal Management TrainingLeadership Development

ADVISE, ASSIST, ADVANCE32 Countries100 years of experience125 businesses launched & grown150m in deal values completedwww.3Rinsid[email protected]

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