Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition

January 25, 2012

mark@markfriedler.com

Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition

What Do you want next?

Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition

How to Get there:

1)Your Team2)Know your business3)What do they want?4)What do you want?5)Get help executing your plan

At 15, I had 2 Goals- 1) Bicycle NYC-Seattle 2) Don’t walk any hills

Problem – flat tire before we left New York – 2 more that day

Very Long Hills

No “I” in TEAM

3,752 miles later!

…Then We Climbed Mt. Rainier(Right goal, wrong tools)

Meet Mark, Entrepreneur

1) It’s ALL About Your Team

Do You Have the Team You Need?

Hire SLOWLY, fire quickly

Great people drive your business, bad people kill it

What If You Could Read Them?

YOU CAN!

How They Do It – Read Behaviors

Why They Do it – Values

How Does Your Company Look?

Values Drive Your Team(Train for skills)

Train Your Team – then Have Fun

2) Know and Grow Your Business

• What do you want? What’s your number?

• Focus: the attracting force for buyers

• Prepare NOW for an acquisition

• The DOs and DON’Ts

How to Get to the Altar? Acquirers Love Businesses That Are:

Focused and unique

Have great people

Growing, cash flow, profitable

Add value to buyer

Stand Out with Your Growth Story

Are your Forecasts accurate?

Cash flow is king - not EBITA, etc

Increasing margins show your efficiency

Be transparent – elevator pitch

3) Make The Buyer Look SmartShow fast entrance into a new business - you are expert

Deliver the “Promise of pot of gold at end of the rainbow”

Strengthen Your Business Now – AIM!

Accept: Plans that fit in your current sandbox

Invest – make real growth plans

Measure – KPIs, ROI, your key numbers

Repeat!

A Secret They Won’t Tell You

They buy you - then the business

Be nice, open, curious, helpful and positive

3 STEPS HOW TO KILL A DEAL…

1) Be a Cocky Arrogant Jerk

2) Disrespect your commitments (blow off stuff, be late)

3) Screw the other guy

4) What Do You Want Next?

Get Ready to Jump In

Negotiate Key elements at the start of the process

Roles, reporting, goals, time, meetings

Compensation, bonus, earn-outs, stock

Contract length, non-compete, severance

Find a few senior champions for you

5) Get Ready Now

1) What if a buyer knocked today?

2) Have you done your own due diligence (as if you were a buyer)?

3) What’s on your “unknown risks” list and what can that cost you?

4) When will you start planning for the future?

5) HOW to Get Ready Now

1) Create a list of target acquirers or strategic investors/partners

2) Work with your team and an expert to create your 1-2 year plan

3) Do MORE of what you do best, kill the other stuff

4) Create a content plan for media and events

Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition

How to Get there:

1)Your Team2)Know your business3)What do they want?4)What do you want?5)Get help executing your plan

Journey to IPO – BUILDING YOUR BUSINESS FOR AN acquisition

(Thank you! Connect with markfriedler)

mark@markfriedler.com 415.683.6601