1. What’s Your Business Really Worth?
Greg Hayes
Director, Hayes Knight
Moderated by Small Business Commentator Valerie Khoo

2. How much is your business worth?
Greg Hayes, Director, Hayes Knight 2

3. Most businesses are valuable
Some less than you think
Some more than you think

4. When is value normally tested1
Event 2
Transaction 3
Planning
Value my business

5. Some stats worth knowing
Around 1.8 mill SMEs
40% will experience a succession event in next 5 years
A $100 billion + transfer of value
Industry convergence

6. How value is measured Revenue Size Valuation approach Less than $500K
Industry based method or could have no value
500K to $3 mill.
Value should exist – most likely earnings based approach
+ $3 mill.
Most common earnings based

7. How do we measure Earnings You are only worth what you can generate
Focus on profits
Cash
Free cash is the real measure
Focus on cash flow
Assets
Tangible assets the true measure
Focus on net realisable values

8. What time period do we look at
Normally
3 years before
The current year
The forecast for next year

9. What influences value? Size Profits Difference/ Dependency Growth
Systems
Difference/
Dependency

10. Know your base position
How to grow your value
Know your base position
Know what drives value
Know your time frame
Drive your business
Measure & manage

11. Expectation equity
Increase value
Drive performance

12. The value of knowing your worth
If you are likely to sell in the next 5 years
Need to know
Chance to improve your outcome
If you have no sale plans
You will one day
Know whether your performance stacks up
Know your asset value

13. How much is your business worth?
Greg Hayes, Director, Hayes Knight 13

14. Current economic conditions – challenges and opportunities for small business Christena Singh Author – Sensis® Business Index

15. The Yellow Pages™ network
Australians turn to Sensis’ information services almost 70 million times a week.
Millions of Australians rely on Sensis every month:
Print: 10m monthly unique users
Online: 8.8m monthly unique visitors
Voice: 2.6m monthly unique users
Sat nav:1.7m monthly unique users
Mobile: 1.8m monthly visits
Almost 600,000 Australian businesses rely on Sensis for customers
Our whole business is based on the premise that more buyers using our services means more sales for our advertisers.
So who uses our products? Australians turn to Sensis’ information services almost 70 million times a week. That’s about 7,000 times a minute![1] Millions of Australians rely on Sensis every month[2]:
Print: 10m monthly unique users[3]
Online: 8.8m monthly unique visitors4
Voice: 2.6m monthly unique users2
Satellite navigation: 1.7m monthly unique users2
Mobile: 1.8m monthly visits[4]
This is why almost 600,000 Australian businesses rely on Sensis and Yellow Pages for their advertising.
[1] 1: Independent research by TNS of 18 – 64 year olds in Sydney, Melbourne, Brisbane, Adelaide and Perth. Jan – Mar and Jul – Dec 2007
[2] Includes all Sensis products. Print includes Yellow Pages®, White Pages® and UBD® directories.
[3] Roy Morgan Single Source Australia, October 2007 – September Base: Australians 14+
[4] Omniture. Average monthly unique visitors./visits November 2008 to February 2009
[5] Total page views across Sensis’ Australian and Chinese sites in December Source: Sensis – Omniture. Soufun – Soufun data. Auto and IT sites – iResearch.
[6] Average monthly page views December quarter 2008 vs March quarter Source: Sensis – Omniture. Soufun – Soufun data. Auto and IT sites – iResearch.

17. Forecast growth … is your business planning for it?
80s recovery
90s recovery
forecasts
Average growth over 30 year period
Point 2
Source: ABS Catalogue Number and Treasury.

18. Growth in NSW Sensis® Economics and Market Intelligence Group
SOURCE: Australian Bureau of Statistics
Catalogue , December quarter 2009

19. Unemployment trending down in New South Wales
Sensis® Economics and Market Intelligence Group
SOURCE: Australian Bureau of Statistics
Catalogue , June 2010

20. Sensis® Business Index SME confidence – New South Wales
Sensis® Economics and Market Intelligence Group
SOURCE: Sensis® Business Index
Sweeney Research – June 2010

21. The issues keeping small business operators in up at night…
No concerns = 29%
Q. As far as your business is concerned, what problems, if any, are you facing at the moment?
SOURCE: Sensis® Business Index June 2010

22. The issues keeping small business operators in up at night…
No concerns = 29%
Q. As far as your business is concerned, what problems, if any, are you facing at the moment?
SOURCE: Sensis® Business Index June 2010

23. The issues keeping small business operators in up at night…
No concerns = 29%
Q. As far as your business is concerned, what problems, if any, are you facing at the moment?
SOURCE: Sensis® Business Index June 2010

24. The issues keeping small business operators in up at night…
No concerns = 29%
Q. As far as your business is concerned, what problems, if any, are you facing at the moment?
SOURCE: Sensis® Business Index June 2010

25. The issues keeping Sydney small business operators in up at night…
No concerns = 22%
Q. As far as your business is concerned, what problems, if any, are you facing at the moment?
SOURCE: Sensis® Business Index June 2010

26. About half want growth…
SOURCE: Sensis® Business Index June 2010

27. What do growth businesses have in common?

28. They are more confident…
SOURCE: Sensis® Business Index June 2010

29. They are more likely to export…
SOURCE: Sensis® Business Index June 2010

30. They are more likely to grow their sales:
SOURCE: Sensis® Business Index June 2010

31. Employment…
SOURCE: Sensis® Business Index June 2010

32. And profitability…
SOURCE: Sensis® Business Index June 2010

33. (Chart shows mean rating on 10 point scale)
SMEs are care about sustainable growth…
Q. On a scale of one to ten – where one means you are not concerned at all and ten means you are very concerned – how concerned are you about…
(Chart shows mean rating on 10 point scale)
SOURCE: Sensis® Business Index
Sweeney Research – June 2010

34. Thank you Christena Singh Author – Sensis® Business Index www. about
Thank you Christena Singh Author – Sensis® Business Index

35. What’s Your Business Really Worth?
Greg Hayes – Director, Hayes Knight
Christena Singh – Deputy Chief Economist and Author of Sensis Business Index
Moderated by Small Business Commentator Valerie Khoo