connecor company presentation summary selling a business
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Explaining our method and process in selling a businessTRANSCRIPT
Company Presentation- Summary Selling a Business
Presented by: H.J. Oudeman
December 2012December 2012December 2012December 2012
ConnecorConnecorConnecorConnecorConnecorConnecorConnecorConnecor InvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestments
Connecting businesses … is our business
• In-house deal-making expertise and experience
• Worldwide network of own and affiliated offices
• Worldwide network with professional parties and
• Access to all legal, fiscal, financial & administrative services
needed, in all languages, to structure deals
What is it that we do?
• We assist owners and future owners of businesses in the process
of the transition of ownership of a company
• We sell and find businesses, working together with other
professionals to make deals happen
• We value, prepare and promote businesses for a take-over and
help getting a deal done through legal and fiscal structures
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Overview of the decision process before selling a business:
What's next? Owners of businesses
- I - Continue w/company
- II - I do not continue
A. I do not continue alone I.B. shareholder
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A. I do not continue alone I.B. shareholder
II.
B. I stop
I have succession II.B.1. Succession plan (fiscal)
II.B.
2. I have no succession
a. I am looking for a buyer II.B.2.a. Sale of the company
II.B.2.
b. I am closing the co. II.B.2.b. Divesting/liquidation
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Overview of the selling process of a business: The Steps
Steps
Processes Decision
Revision of future client
Interview with owner
Assessment business Explain Selling Process
Prepare a valuation
Valuation of the business
Data gathering
Recasting financials Prepare Valuation /
Price opinion
Agree on representation
Preparing Prepare Sales Dossier / plan Prepare media plans Organize Data Room Put the business on the
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Preparing for the selling process
Prepare Sales Dossier / plan
of offering
Prepare media plans Organize Data Room Put the business on the
market
Promoting the business to buyers
Select media / List with
buyers
Place ads / distribute teasers Data base of interested
parties
Enough interest generated?
Interviewing potential buyers
Interviewing at offices /
Financially solid?
NDA / Explain process Introduction to seller Seriously interested parties
found?
Negotiating with interested parties
Formalizing serious interest
Exclusive period / LOI Financing possibilities /
downpayment
Accept Offer to purchase
(LOI)?
Closing the deal Due Diligence
Transfers / Redaction of
contracts
Review all documents Sign the deal!
ConnecorConnecorConnecorConnecorConnecorConnecorConnecorConnecor InvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestments
Overview of the selling process of a business: Time & Sequence -1-
OPTION: CICLE OF A PLANNED EXIT STRATEGY
SUCCESSION OR SALE
1 1 - 2 1 - 24 - 1212 - 4 2 - 4 1 - 2 4 - 6
CMarketing
Visits and
Letter of Intent and
elimination of contingenciesInterviews
Deal closed
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IXVIIVIVIVII III VIIII
A
B
InitialReview
Analysis and valuation
Preparationof the
presentation
Interviews
Visits andnegotiations
Verification and hand-over
Analysis and valuation
Analysis and valuation
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Overview of the selling process of a business: Like a sailing boat
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Overview of the selling process of a business: Like a sailing boat
1 1 - 2 1 - 24 - 1212 - 4 2 - 4 1 - 2 4 - 6
Marketing
The Harbor
Visits and
Letter of Intent and
elimination of contingenciesInterviews
The WindThe Sails The Spinnaker
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IXVIIVIVIVII III VIIII
InitialReview
Analysis and valuation
Preparationof the
presentation
Interviews
Visits andnegotiations
Verification and hand-over
Analysis and valuation
Analysis and valuation
The Rudder
The Hull
The Sails
The SeaThe Hull
The Spinnaker
The Dagger
The Deck
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Overview of the selling process of a business: Like a sailing boat
I Phase of initial review The Rudder Set out the right course
II Phase of analysis and valuation The Hull/The Dagger Have a solid foundation
III Phase of preparation and presentation The Deck/The Masts Have great equipment
IV Phase of marketing The Wind Generate enough attention
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IV Phase of marketing The Wind Generate enough attention
V Phase of interviewing Catch the right attention,
VI Phase of general review review and correct when necessary
VII Phase of visits and negotiations
VIII Phase of exclusive negotiation
IX Phase of closing and hand-over The Sea/The Harbor Overcome the environment and close the deal
You are the owner of the boat, but do you have a good captain to sail to a safe harbor during these turbulent times?
The Sails
Spinnaker Be prepared to do what is needed
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Overview of the selling process of a business: Time & Sequence -2-
minimum maximum
I Phase of initial review 1 1 weeks Review potential
II Phase of analysis and valuation 2 4 weeks Number crunching
III Phase of preparation and presentation 1 2 weeks Preparations & presentations
IV Phase of marketing 1 1 weeks Marketing
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IV Phase of marketing 1 1 weeks Marketing
V Phase of interviewing 4 12 weeks
VI Phase of general review 1 2 weeks
VII Phase of visits and negotiations 2 4 weeks Negotiations and visits
VIII Phase of exclusive negotiation 1 2 weeks Serious interest
IX Phase of closing and hand-over 4 6 weeks Verification and hand-over
Estimated time 17 34 weeks
Average weeks
Interviewing
26
ConnecorConnecorConnecorConnecorConnecorConnecorConnecorConnecor InvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestmentsInvestments
Overview of the selling process of a business: Time & Sequence -3-
OPTION: CICLE OF A PLANNED EXIT STRATEGY
SUCCESSION OR SALE
1 1 - 2 1 - 24 - 1212 - 4 2 - 4 1 - 2 4 - 6
C
Deal closed
10%
50%
10%
Marketing
Visits and
Letter of Intent and
elimination of contingencies
Interviews
10
IXVIIVIVIVII III VIIII
A
B
100% 80%
20%
60%
20% 20% 20%
30%
50%
10%
25%
25%
40%
50%
35%
InitialReview
Analysis and valuation
Preparationof the
presentation Interviews
Visits andnegotiations
Verification and hand-over
Analysis and valuation
Analysis and valuation
15%
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Overview of the selling process of a business: Time & Sequence -4-
Points of attention Attention focussed on:
I Revision 100%
II Analysis & valuation (A&V) 100%
III A&V, preparation 20% 80%
IV A&V, preparation, marketing 20% 30% 50%
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IV A&V, preparation, marketing 20% 30% 50%
V A&V, preparation, marketing, interviews 20% 10% 10% 60%
VI A&V, preparation, marketing, interviews 20% 20% 10% 50%
VII A&V, preparation, marketing, negotiations 40% 10% 25% 25%
VIII A&V, marketing, negotiations 50% 5% 45%
IX A&V, negotiations 15% 35% 50%
Revision
A&VPreparatio
n
Marketing
Interviewing
Negotiatio
ns
Closing
Total time dedicated: 3% 33% 11% 15% 17% 12% 9%
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Overview of the selling process of a business: Decision making
Milestones
I After the initial review a decision needs to be made if the cycle is to be initiated
II After discussing the valuation report a decision is needed to put the company up for sale or not, at what price and which conditions
III The presentations and marketing material needs to be prepared and approved
IV The first contacts with interested parties are attended: initial feedback
V Review of the results of the marketing, presentations and interviews
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V Review of the results of the marketing, presentations and interviews
VI Adjustments necessary in marketing and presentations?; visits with seriously interested parties
VII A period of exclusive negotiations is accepted
VIII Letter of intend, verifications and elimination of contingencies; involvement of attorneys/lawyers, accountants
IX Closing the deal and hand-over of the company
Levels of decision making:
A After reviewing the valuation and analysis the owner needs to take the decisión of putting the business up for sale, or continue, or close
B After receiving feedback from interested parties the owner needs to take a decision to contine the proces and make adjustments
C After negotiating with seriously interested parties, the owner needs to decide to go ahead with the sale, or continue or close the business
ConnecorConnecorConnecorConnecorConnecorConnecorConnecorConnecor : Offices: Offices: Offices: Offices: Offices: Offices: Offices: Offices
• We have 6 own offices worldwide
Where are we
• Amsterdam
• Barcelona
• London
• Hong Kong
• Shanghai
• Singapore
And have 650 associates in over 30 countries worldwide
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January 2008
youJanuary 2011January 2011January 2011January 2011
Spain: Connecor Investments S.L., Avenida Diagonal 399, 1º, 1ª, 08008, Barcelona, Spain Tel: +34 93 476 0170, Fax: +34 93 208 2582
The Netherlands: Connecor The Netherlands, WTC Amsterdam, Tower C-6th floor, Strawinskylaan 661,1077XX, Amsterdam, The Netherlands Tel: +31 20 578 8387, Fax: +31 20 578 8376
United Kingdom: Connecor United Kingdom (a trading name of Welland Investments Limited), 4th Floor, Clerks Well House, 20 Britton Street, EC1M 5TU, London, United Kingdom Tel: +44 207 977 1280, Fax: +44 207 6917 703
Hong Kong: Connecor Hong Kong, Rooms 2103-04, Wing On Centre, 111 Connaught Road Central, Hong Kong Tel.: +852 3590 3321, Fax: +852 3006 1436
Singapore: 14 Robinson Road, #13-00 Far East Finance Building, Singapore 048545 Tel: +65 6866 143, Fax: +65 3125 7293
Shanghai: Connecor Shanghai, 3108 United Plaza, 1468 Nanjing Road, West Jing'an District, Shanghai 200040, China Tel: +86 21 62896665, Fax: +86 21 62896697