Level 6, 410 Queen Street Brisbane Managing Succession In a Tender and Dynamic environment and other scenarios you should be prepared for. Level 6, 410 Queen Street Brisbane

Level 6, 410 Queen Street Brisbane What is a Family Business? Level 6, 410 Queen Street Brisbane

Level 6, 410 Queen Street Brisbane Dimensions of a Fully Integrated Family Business Family Legacy and Connection Governance Structures and Processes Financial Accountability and Management Human Capital and leadership Development SUSTAINABILITY

Level 6, 410 Queen Street Brisbane Financial Accountability and Management Oversight Financial Responsibility Continuation of Wealth in the Future

Level 6, 410 Queen Street Brisbane Strategic focus on niches Relative quality and ROI Speed to market More agility and flexibility Higher ownership concentration Patient capital and long-term perspective Lower total costs Potential Competitive Advantages of Family Business

Level 6, 410 Queen Street Brisbane

Level 6, 410 Queen Street Brisbane Are you clear about the value of your business?  How do you determine Value  Past  Present  Future  Free Cash Flow  Operations  Investment  Risk  Non Financial  Strategy  Competitive Posture

Level 6, 410 Queen Street Brisbane We have distilled the various factors that contribute to value into the following simple equation Value($4.00) = Free Cash Flow p.a.($1.00) Risk – Growth (25%)

Level 6, 410 Queen Street Brisbane However; The Risk – Growth (Denominator) in the equation includes variables that are unlikely to be the same from one business to another. That is why the concept of valuing a business as a “ Multiple of Revenue” OR “Multiple of Earnings” is so unreliable It may give a very rough guide, but as a measure of true value it is dangerous. It ignores the unique characteristics of the business in question.

Level 6, 410 Queen Street Brisbane Strong reliance on Government tenders High Capital costs Well within the public eye What is Unique about the Bus Industry?

Level 6, 410 Queen Street Brisbane With these three elements to the equation, there are three ways in which you can enhance the value of your practice – increase the cash flow, reduce the risk or raise the growth potential. Cash Flow Risk Growth

Level 6, 410 Queen Street Brisbane