Positioning Your Company for Sale Presented By: Pierre Villere.
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Transcript of Positioning Your Company for Sale Presented By: Pierre Villere.
![Page 1: Positioning Your Company for Sale Presented By: Pierre Villere.](https://reader036.fdocuments.net/reader036/viewer/2022082712/56649e715503460f94b6ff81/html5/thumbnails/1.jpg)
Positioning Your Company Positioning Your Company for Salefor Sale
Presented By:
Pierre Villere
![Page 2: Positioning Your Company for Sale Presented By: Pierre Villere.](https://reader036.fdocuments.net/reader036/viewer/2022082712/56649e715503460f94b6ff81/html5/thumbnails/2.jpg)
Positioning Your Company Positioning Your Company for Salefor Sale
Why Are Companies Sold?
What Do Companies Being Sold Look Like?
Family Owned Businesses Partnerships Divisions of Multi-National Companies
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Positioning Your Company Positioning Your Company for Salefor Sale
Reasons:Multigenerational company - Somebody
wants outSuccession issuesEstate Tax issuesDivision not a good fit/hard to manage
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Positioning Your Company Positioning Your Company for Salefor Sale
The Decision to Sell – The Process
Valuation Watch out – you may get what you want to hear
Understanding the Value Today vs. Value Tomorrow
Hiring an intermediary – does it make sense?
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Positioning Your Company Positioning Your Company for Salefor Sale
So You’ve Decided to SellGetting Your House In OrderWhat is “Recast EBITDA”?
– Net income
– Plus interest, taxes, depreciation/amortization
– Plus addbacks
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Positioning Your Company Positioning Your Company for Salefor Sale
So You’ve Decided to Sell Addback issues Inventory issues Other “Private Company Expense” issues
– The 10-to-1 Rule
Preparing the “Book” Records Rumors
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Positioning Your Company Positioning Your Company for Salefor Sale
Who Are the Buyers?In Your Market
– Multinationals– Super-regionals– Large local player– Two others like you
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Positioning Your Company Positioning Your Company for Salefor Sale
Where Is The Industry Headed?
Consolidation is the keyword
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Positioning Your Company Positioning Your Company for Salefor Sale
The Sale ProcessNegotiated Transaction vs. AuctionTour of operations/visits with managementNegotiating the Letter of Intent
– Main purpose is to lay out principle terms of deal
– Standstill agreement is key component
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Positioning Your Company Positioning Your Company for Salefor Sale
The Sale Process
Definitive Agreements and Due Diligence Audit process Stock vs. asset purchase Employment/Non-Compete Agreements Representations and Warranties Disclosure Schedules Environmental analysis
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Positioning Your Company Positioning Your Company for Salefor Sale
The Sale Process
Definitive Agreements and Due DiligenceGeological analysisReal estate – title, etc.360 degree due diligenceTimeline
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Positioning Your Company Positioning Your Company for Salefor Sale
The Closing ProcessCertain items may be renegotiated at the endEmotions run high at the end – keep them in
checkKeep your eye on the ball – get the deal closed