positioning your company for sale
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Positioning Your Company for Sale. Presented By: Pierre Villere. Positioning Your Company for Sale. Why Are Companies Sold? What Do Companies Being Sold Look Like? Family Owned Businesses Partnerships Divisions of Multi-National Companies. Positioning Your Company for Sale. Reasons: - PowerPoint PPT PresentationTRANSCRIPT
Positioning Your Company Positioning Your Company for Salefor Sale
Presented By:
Pierre Villere
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
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
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?
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
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
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
Positioning Your Company Positioning Your Company for Salefor Sale
Where Is The Industry Headed?
Consolidation is the keyword
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
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
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
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