Prepare to Sell Your Company: A Guide to Planning and Implementing a Successful Exit

Contents......Page 6
Acknowledgements......Page 11
Introduction......Page 12
Selling your company......Page 14
Your exit plans should bring you these benefits......Page 15
The most influential factor, the P/E ratio, explained......Page 17
Why should you sell your company?......Page 18
Traditional exit options explained......Page 19
Taking advice from professionals......Page 26
Who are these professional advisers?......Page 27
Selecting your corporate advisers......Page 36
The world of business hates uncertainty......Page 39
Influencing factors that you should know about......Page 42
What acquirers/investors look for......Page 43
Getting the best sales proceeds......Page 53
Identifying potential acquirers/investors......Page 54
What to look for when selling the company......Page 55
Setting your exit package......Page 58
Company valuation using P/E ratio/multiples method......Page 59
Increasing your company valuation......Page 62
Deductions from the sales proceeds......Page 63
Distribution of sales proceeds amongst shareholders......Page 64
Is this enough for your exit package?......Page 65
Further company valuation methods......Page 66
So you have made the decision to exit......Page 70
Factors that will help you decide your time plan......Page 71
Constructing your exit timetable......Page 72
Identifying your SWOTS......Page 74
Preparing your customised exit strategy......Page 76
Taking your time......Page 77
The importance of a company's constitution......Page 78
Types of corporate structure......Page 79
Executive roles and duties of private company executives explained......Page 90
The employee management structure......Page 100
Develop your own successor . . .make yourself redundant......Page 102
Who should be in the executive team?......Page 104
Developing the executive team......Page 105
Benefits of an executive team......Page 106
Executive team meetings......Page 107
What first attracts a buyer?......Page 108
Prospective buyers will probe these aspects......Page 110
Introduce a financial infrastructure early on......Page 113
Your company's profit......Page 117
A closer look at your gross profit......Page 118
Net profit......Page 119
Management accounts......Page 121
Finance at the growth stage of the company......Page 122
Grow your order book as an asset......Page 124
Financial view of growth by acquisition......Page 125
Financial view of growth by franchise......Page 126
Borrowing for growth......Page 127
Things you should be aware of in applying for a loan......Page 129
Buyers' view of 'borrowings'......Page 131
Financial activity just before the company sale......Page 132
Your annual sales turnover......Page 133
Review your company sales......Page 134
Get on with it......Page 135
What acquirers/investors want to see in your company sales turnover......Page 136
Your sales approach is a vital ingredient......Page 137
The importance of progressively rising sales......Page 139
Diversifying......Page 141
Your company's customer base......Page 142
Growing your company sales......Page 143
Contracts with customers......Page 150
Branding......Page 155
Brand recognition......Page 156
Further marketing activity......Page 157
What are intellectual property and assets?......Page 159
Have you got intellectual property and assets?......Page 160
Trade marks......Page 161
Brand names......Page 163
Domain names......Page 165
Protecting intellectual rights......Page 166
The value of intellectual assets as a tool to influence P/E ratio......Page 167
Marketing your intellectual property and assets......Page 169
Business activity (or business offering)......Page 171
Logistics......Page 172
Procurement and supply chain management......Page 173
Company law and statutory registers......Page 175
Leases, hire purchase, hire agreements, mortgages, contracts with suppliers......Page 176
Property leases......Page 177
Commercial documents......Page 178
Think about your employees......Page 180
Acquirers'/investors' view of employees......Page 181
Employment law and human resources (HR) specialists......Page 182
Telling staff of the company sale......Page 185
Key personnel......Page 186
IT staff......Page 187
Staff training......Page 188
Organisation chart......Page 189
Importance of information technology......Page 190
Choosing hardware and software......Page 191
IT security......Page 193
Head of IT......Page 194
Company reputation......Page 196
The effect of reputation on your P/E ratio......Page 197
When is pre-sale?......Page 198
Shares buy back......Page 199
Straightening out the books......Page 201
Making the market aware......Page 204
Enter the professionals......Page 205
Personal taxation......Page 207
Confidentiality agreement......Page 208
Heads of Terms......Page 209
The structure of the deal......Page 210
Sale and purchase agreement......Page 213
'Lock ins'......Page 214
What is the Due Diligence investigation?......Page 216
The impact of the Due Diligence investigation......Page 217
Should you hold back information?......Page 218
You will find Due Diligence difficult......Page 219
Keep track of your replies......Page 220
Disclosures......Page 222
When does Due Diligence take place?......Page 223
The scope of Due Diligence......Page 224
Prepare in advance......Page 245
Who attends?......Page 248
What happens?......Page 249
Distribution of sales receipts......Page 251
Escrow accounts......Page 252
Release of escrow accounts......Page 253
Electronic completion......Page 254
At last. . .......Page 256
Investments......Page 257
Time to smell the roses......Page 258
Management accounts explained......Page 259
Setting a budget......Page 260
Sample monthly management accounts report......Page 261
Cash flow report......Page 262
Budget report......Page 265
Information memorandum......Page 266
C......Page 268
G......Page 269
P......Page 270
W......Page 271
G......Page 272
W......Page 273