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![ON A PERSONAL LEVEL
★If you are critical to the business, can you extricate yourself in advance? [No
= earn out (probably) / Yes = you’re free!]
★What are you going to do next?](https://image.slidesharecdn.com/sellinganagency-140911090621-phpapp01/75/FuseBox-Session-9-Exiting-a-Business-Alex-Cowell-MBA-11-2048.jpg)
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FuseBox Session #9: Exiting a Business - Alex Cowell, MBA
The document outlines Alex Cowell's journey in selling his digital agency, starting from founding Cubeworks to creating Sponsorworks. It discusses strategies for planning a sale, the sale process, and merging companies, highlighting the importance of preparation, defining clear goals, and engaging trusted advisors. Key tips include understanding market timing, maintaining business attractiveness, and fostering relationships during negotiations.
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FuseBox Session #9: Exiting a Business - Alex Cowell, MBA
- 1. SELLING MY DIGITALAGENCY: THE JOURNEY ALEX COWELL
- 2. THE BEGINNING OFTHE JOURNEY Degree in Oceanography with Marine Biology, University of Southampton Worked for dot com boom agency 2000-02 Moved to Brighton & founded Cubeworks 2002
- 3. THE NEXT CHAPTER Sold Cubeworks to MBA in June 2013 In middle of ‘earn out’ with MBA until January 2016 Founded a new business - Sponsorworks, global SaaS sponsorship management platform LONDON - MIAMI - BRIGHTON
- 4. THINGS I’LL COVER(BRIEFLY ) 1. What’s your strategy? 2. Planning for sale 3. The sale process 4. Merging 5. My top tips
- 5. 1. WHAT’S YOURSTRATEGY?
- 6. “It’s almost likethe military: before you go in, you want to know how you're going to get out.” –TED THOMAS MANAGING PARTNER, SUN EXIT ADVISORS
- 7. WHAT ROUTE WILLYOU TAKE? Trade sale Succession plan Lifestyle business Transition e.g. services to product IPO
- 8. 2. PLANNING FORSALE
- 9. “You only sellyour business once.” – ONE OF MY ADVISORS
- 10. QUESTIONS TO ASKYOURSELF 1. Who might buy your business? 2. What products & services would add value to their business? 3. What size business would suit these buyers? 4. What do you need to change or add to your offering?
- 11. ON A PERSONALLEVEL ★If you are critical to the business, can you extricate yourself in advance? [No = earn out (probably) / Yes = you’re free!] ★What are you going to do next?
- 12. KEY FACTORS TOMAXIMISE VALUE 1. Profitability 2. Maintaining competitive edge 3. Resilience 4. Scalability & growth potential 5. Culture 6. Brand equity (esp. if brand name will remain)
- 13. “If you've gotall this, people will be banging down the door to buy your company.” – JACK GARSON ! AUTHOR, HOW TO BUILD A BUSINESS & SELL IT FOR MILLIONS
- 14. GET ALL THISTIDY (NOW!) Detailed forecasts & quick access to business data Contracts for all client projects Staff contracts up to date Contractors - be careful of NI liability Operations & staff manuals - get it all down Office lease - be aware of potential costs, break clauses etc. Office environment - spick & span Expenses - no messy personal expenses
- 15. 3. THE SALEPROCESS
- 16. ADVISORS YOU’LL NEED 1. Deal broker - critical for a trade sale, less so otherwise 2. Accountant / Tax advisor - may be same person or two people 3. Specialist lawyer - in digital & M&A
- 17. DOING THE DEALAT THE BEST TIME When is the right time in the market to sell? ★Find & stay in touch with an industry M&A broker. Get to know one a few years before you plan to sell. What is the minimum deal for shareholders & when could you achieve this? ★You must be prepared to walk away if you don’t get this.
- 18. THE ACTUAL PROCESS Your #1 aim: get an offer (ideally more than one to create competition) 1. Prepare short sales prospectus 2. Send it to target buyers & arrange meetings 3. Present really tight story to buyers 4. Get offers
- 19. BUT DO NOTFORGET… ★The deal might not happen… ★…so don’t ever take your eye off your business - it can take 6-12 months, a long exhausting time
- 20. THE NEGOTIATION Brokeris key in initial stages Might want a second advisor to complement the broker for any sticking points Question the buyer as much as they question you. (Get business plan & forecasts. Ask around in the industry to see what they are really like.) After heads of terms, you need a great lawyer. Still a lot to negotiate.
- 21.
- 22. QUICK TIPS ONMERGING ★Remember during any tough negotiation you might have to work with these people ★Ensure deliver unified message across board - internal & external ★It’s all about relationships - avoid any ‘them’ & ‘us’ - throw some parties! ★Use social technology to unite multiple locations - we just replaced Yammer with Slack (it’s brilliant)
- 23.
- 24. MY TOP TIPS 1. Be clear on your strategy 2. Start preparing your business today 3. Be clear on what you want 4. Rally trusted advisors around you 5. Enjoy the ride! It’s an exhilarating experience.
- 25. THANKS [email protected] @alexcowell Feel free to send me any questions. LONDON - MIAMI - BRIGHTON