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11.45 Arrival 12.00 Welcome and check-in 12.30 Guest Entrepreneur Peter Worth 13.15 Lunch 13.45 Exiting your business the key themes 14.00 The Big Picture: your ambition and desired outcomes for exit Working session/discussion 14.45 Planning your exit: the exit process, strategic options and considerations, personal and organisational implications, actions 15.30 Break 15.45 Expert panel 16.30 Wrap up 17.00 Close Working session/discussion Roger Gregory, Pitmans; Martin Dakin, HSBC; Ian Johnson CVDFK and Peter Worth 2
KEY THEMES 3
Business exit is one of life s many transitions FRIENDS Hobbies School NCT Work 30 40 50 70 AGE 60 Uni School 10 18 21 Investor BUSINESS CEO Director Chair MD Employee Founder 4 Child Teenager Adult Spouse Parent Grandparent FAMILY
When others are involved Customers Suppliers Employees Industry it can be a challenge for founder-led businesses 5
Inside the mind of the seller Inside the mind of the buyer I m done with it I can do something with it 6
Positioning your business for sale Your management or employees? A competitor/ industry peer? A supplier? Who will buy you? A customer? A consolidator? The financial markets? How close are your relationships? 7
8 Cog:ent The Cognisant Entrepreneurs Group Support during the transition curve Energy Energy more internally focused Holding On Fighting Disintegration Letting Go Energy more externally focused Moving On - Reintegration Turbulent Time Focused Shock Losing focus Focused Awareness Search for meaning Integration euphoria Blame - self - others Feelings of panic, dread, helplessness and apathy Tasting/ Experimenting Feelings of satisfaction Numbness Daze coping Acceptance Discovery and learning Denial pining minimising Source: Derived from E Kubler-Ross, On Death and Dying Feelings of optimism, hope and renewed energy Time 8
9 Cog:ent The Cognisant Entrepreneurs Group Support during the transition curve Energy Minimise shock. Give full and early communication of intentions, possibilities and overall direction. Be patient. Discuss implications of change with individuals. Notice and pay attention to people s signals. Listen, sympathise, offer support protection. Recognise how the change can trigger off past experience in individuals. Try not to take others reactions personally. Help others complete e.g. rituals. Allow others to take responsibility. Encourage. Create goals. Coach. Encourage risk taking. Exchange feedback. Set up development opportunities. Discuss meaning and learning. Reflection. Prepare to move on. Do not suppress conflict and expression of difficult views / emotions. Overview of experience. Celebrate success. Help individuals weather the storm. Source: Derived from E Kubler-Ross, On Death and Dying 9 Time
What do you need to let go of? How will you support yourself in the transition? And, what would you do with your time (and money)? 10
Exploring options Trade sale MBO Family succession Employee ownership MBI Floatation Merger Liquidation Creating options Strong profitability Strong balance sheet Strong future prospects Strong operation Strong customer relationships Strong management team Ability for the buyer to add/extract value 11
Process considerations: Right time? (personally and organisationally) Business implications? (average cost of AIM listing is 250k) Employee communication? (multiple transition curves) Customer/supplier communication? (integrity of relationships) Tax implications? (start planning early) 12