Getting a Great Sale Price for Your Company

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Full video presentation available at strategiccompanysales.comIn this video presentation, Mark Ostryn from Strategic Company Sales ( a Sydney based business broker discusses the key methods for maximising the sale value of a company. In it he covers key strategies and profiles of optimum buyers including: If your buyer is in the same industry as yours, they get to neutralise a competitor, and consequently gain market share. Interstate or overseas buyers may see purchasing your company as a means to expanding geographically. The buyers company may also obtain cost benefits either through greater buying power with suppliers or reducing their own overhead. They may not need two accounts teams, field sales forces or receptionists. If your company has a good management team, growing earnings, operates in an expanding market and is not dependent on you, the owner for its future success, this can only enhance value. Finally, by acquiring your company, the buyer can enjoy the benefits of vertical integration


  • 1. Mark Ostrynwww.strategiccompanysales.com02 9982 7151

2. 4x 2xProfit2,000,0001,500,000EBIT1,000,000Listed Price500,0000 EBIT2007 2011 3. Sale ValueProjections & Enthusiastic Buyer Historical EBITLiquidation Value 0 500,000 1,000,000 1,500,000 2,000,000 4. Value Enhancers 5. Value ChainInboundYourOutboundSuppliers CustomersChannels Company Channels 6. Opportunity. 7. Sale ValueProjections & Enthusiastic Buyer Historical EBITLiquidation Value 0 500,000 1,000,000 1,500,000 2,000,000 8. Sale ValueStrategic SaleProjections & Enthusiastic Buyer Historical EBITLiquidation Value 0 500,000 1,000,000 1,500,000 2,000,000 9. Strategic Company Sales Build ValueDevelopStrategiseTransact Transition& Target CompetitivePotentialEffectively Smoothly BuyersTension 10. DirectApproaches Appoint AgreeSolicit QualifySTARTAdvisors Strategy Interest Outbound Interest MarketingFINANCIAL, LEGAL, CO-ORDINATE &SELECTIVELYBUYERS GOALS ANDINSURANCE, SALESPROJECT MANAGE PUBLICISE &CAPACITY TOAGENT, COACHWITH EXTERNALAPPROACH KEYPURCHASETEAM & STAFF (?) POTENTIAL BUYERSNegotiation &Meetings with Information ConfidentialityOne Page Non Binding Owner MemorandumAgreementTeaserOfferCOMPANY FULL COMPANY BUYER OFFER - HEADS NDA TO INTERESTED KEY SELLINGPRESENTATIONS & DETAILS & OF AGREEMENT / TERM PARTIES TO INCLUDEPROPOSITIONSQ&AS OPPORTUNITIES TO SHEET - SUBJECT TONON SOLICITATION DUE DILIGENCESERIOUS BIDDERSBuyer DueDiligenceOther Finalise Binding OfferFinancial &Deal Close &Preparation ofSubmission & LegalPayment Data Room Acceptance Vendor Due Agreements Diligence onRELEVANT COMPANY BuyerSALES & PURCHASENON FINISHDOCUMENTS AGREEMENT COMPETE, EMPLOYEESAGREEMENTACCESS TO ALL SHAREHOLDERINFORMATION ONAGREEMENTS ETCSELLER / BUYER 11. BuyerProperty / Capital InsuranceSalesBusiness Broker(Ringleader)Accounting Buyers& Financial Lawyer & PlanningAccountant Legal 12. What are yourWhy are you Why is your asking plans after the selling? price reasonable? sale?How will yourHow much do you How has your business transfer really earn from business grown in and run withoutthe business? recent years? you?Why will your What are the keyWhat paymentcustomers remain risks to yourterms are you open loyal?business?to? 13. Market & Competitive PositionStrategic Future Opportunities & Threats Financial Statements Financial Assets & Liabilities Taxes Contracts & LeasesDue Intellectual LegalDiligenceProperty Law Suits Satisfaction &EmployeesRetention& Suppliers Quality Compensation Systems & Technology Other Environment & Green Issues 14. Deal Structure Vendor Finance Escrow / StagedEarn OutsPaymentsBase Price NonLease Back Competes Employment/ Director 15. Strategic Company Sales (02) 9982 7151