1. Shareholder Value Stewart Millington Business Mentor

2. Acquisition & Sale – The Process Is your company ready for sale? What influences the price? Where does acquisition fit in the strategy & am I ready to make an acquisition? The targeting process www.avondale.co.uk

3. Is your company ready for sale? Where does acquisition fit in the strategy? www.avondale.co.uk Two Key Questions

4. The Role of the Managing Director Company Foundation The Profit Engine www.avondale.co.uk Management Strategy

5. The Role of the Managing Director Company Foundation The Profit Engine www.avondale.co.uk Management Strategy

6. The Role of the Managing Director Company Foundation The Profit Engine www.avondale.co.uk Management Strategy

7. The Role of the Managing Director Company Foundation The Profit Engine www.avondale.co.uk Management Strategy Company Strategy

8. Time – the Hidden Cost Buying or selling a company takes up a huge amount of time. It is a highly skilled role that only the MD or Senior Director can undertake. While undergoing this process, it is imperative that you keep delivering the financial numbers. www.avondale.co.uk

9. What Influences the Price? www.avondale.co.uk

11. What Influences the Multiple? www.avondale.co.uk

12. Multiple Influencers Company

13. www.avondale.co.uk Multiple Influencers TRUEGROWTHTRUEGROWTH TRUEGROWTHTRUEGROWTH Company

14. www.avondale.co.uk TRUEGROWTHTRUEGROWTH TRUEGROWTHTRUEGROWTH Company Risk Multiple Influencers

15. www.avondale.co.uk TRUEGROWTHTRUEGROWTH TRUEGROWTHTRUEGROWTH Company Multiple Multiple Influencers Risk

16. True Growth - Equity Valuation Drivers www.avondale.co.uk Benchmarked performance against competition Turnover Growth Profit Ratios

17. Equity Valuation Drivers Income – The Client Base The Four Areas of Management www.avondale.co.uk Brand Name Company Strategy Company Positioning Brand Name Strategic Track Record The Four Areas of Management Multiple

18. Equity Valuation Drivers Income – The Client Base The Four Areas of Management www.avondale.co.uk Brand Name Company Strategy Company Positioning Brand Name Strategic Track Record The Four Areas of Management Multiple

19. Equity Valuation Drivers Income – The Client Base The Four Areas of Management www.avondale.co.uk Brand Name Company Strategy Company Positioning Brand Name Strategic Track Record The Four Areas of Management Multiple

20. Equity Valuation Drivers Income – The Client Base The Four Areas of Management www.avondale.co.uk Brand Name Company Strategy Company Positioning Brand Name Strategic Track Record The Four Areas of Management Multiple

21. Equity Valuation Drivers Income – The Client Base The Four Areas of Management www.avondale.co.uk Brand Name Company Strategy Company Positioning Brand Name Strategic Track Record The Four Areas of Management Multiple

22. The Targeting Process www.avondale.co.uk What is your acquisition strategy? What are you looking to acquire and why? Why should they sell to you? How are you going to convince them to sell if they are not for sale? How are you going to leverage the acquisition? Cost savings alone are not enough. Truly successful acquisitions always have the “additionality” factor

23. Targeting Criteria www.avondale.co.uk The Management of Risk 1.Market 2.Company

24. Targeting Criteria –Market Sector www.avondale.co.uk Market size Market growth Profitability/margin potential Strength of competition Strategic fit with your own company Weight each criteria and score all sectors

25. Target Map www.avondale.co.uk Market Segments Market Segments  Geographical area Product/Service Sectors

26. Targeting Process www.avondale.co.uk Geographical Area Market Segment %ABCD Product/Service Sectors Product/service 190105080 Product/service 260502570 Product/service 345406065

27. Targeting Criteria – The Company www.avondale.co.uk Benchmarked financial performance vs competition The quality of the income stream and clients The strength of the management team and systems Brand name and reputation Strategic track record and pipeline Size of target/fit with your company CULTURAL FIT

28. Think Long, Think Hard & then be bold If in doubt – DON’T. Better to walk away and write of the time and money spent rather than to proceed. www.avondale.co.uk

29. Key to Success www.avondale.co.uk Be prepared Invest time Be strategic Seek advice