1. Value Builder BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk Helping you create sustainable equity value

2. Multiple bandwidths- pre tax BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk Multiple pre tax PBIT or EBITDA 502505007501,0001,5002,000 10 9 8 7 6 5 4 3 2 1 Most likelyLeast likely

3. What Influences the Multiple ?

4. Multiple Influencers BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk TRUEGROWTHTRUEGROWTH TRUEGROWTHTRUEGROWTH Company

5. Multiple Influencers BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk TRUEGROWTHTRUEGROWTH TRUEGROWTHTRUEGROWTH Company Multiple

6. Multiple Influencers BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk TRUEGROWTHTRUEGROWTH TRUEGROWTHTRUEGROWTH Company Multiple Risk

7. BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk Company Foundation True Growth - The Role of the MD

8. BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk The Profit Engine Company Foundation Plan strategy. Don’t manage issues Create Dashboard- Strategy KPI True Growth - The Role of the MD

9. BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk The Profit Engine Management Strategy Company Foundation True Growth - The Role of the MD

10. BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk The Profit Engine Management Strategy Company Strategy Company Foundation True Growth - The Role of the MD

11. Acquisitions BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk Synergy (extra sales) Economies of Scale (cost savings) Company A Company B Merged Company Economies/synergy 1 + 1 = 3 Bigger profits = Higher Multiple? Shareholder Fruit

12. What Drives the Multiple? BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk

13. What Drives the Multiple? Income – The Client Base BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk

14. What Drives the Multiple? The Four Areas of Management Income – The Client Base BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk

15. What Drives the Multiple? The Four Areas of Management Income – The Client Base Brand Name

16. What Drives the Multiple? The Four Areas of Management Income – The Client Base Brand Name Strategic Track Record BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk

17. What Drives the Multiple? The Four Areas of Management Income – The Client Base Brand Name Strategic Track Record Company Positioning BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk

18. What Drives the Multiple? The Four Areas of Management Income – The Client Base Brand Name Strategic Track Record Company Positioning Growth Potential Economic and Political Outlook BUSINESS SALES | ACQUISITIONS | STRATEGY www.avondale.co.uk