1. How to maximise the value of your agency Simon Kite Partner 29 May 2014

2. Introduction The current market Reason for selling / Objectives of the sale Finding the right buyer / the sale process Timing Valuation

3. Grooming business for sale Reduce discretionary expenditure –Staffing levels –Promotion and marketing –Company cars –Travel and entertainment Strip out non-commercial expenditure Administration issues Taxation issues

4. Value detractors - operational Inability to attract new staff Poor staff retention Poor staff monitoring systems Reliance on key billers Poor IT/ accounting systems Current or future litigation

5. Value detractors - financial Over-reliance on customers Adverse performance trends Poor debtor collection Bad and doubtful debts Loss-making divisions Unidentified one-off or personal costs Risk of step increase in overheads

6. Typical mistakes Lack of planning Failure to groom business before sale Unreasonable price expectations Unreasonable expectations on terms and conditions Mishandling process Breakdown in communication between parties Provision of misleading information e.g. unrealistic financial projections Unrealistic timescales Poor communication with management Financing

7. Some final thoughts… Do your clients and candidate see you as thought leaders in your sector?

8. Some final thoughts… Do your clients and candidate see you as thought leaders in your sector? Could your business survive without you?

9. How to maximise the value of your agency Simon Kite Partner 29 May 2014