8 Rules for Preparing Your Company for Sale

1. Start Planning Early - 2-4 years before shareholders or partners want to sell. It can take that long for the changes described and recommended below to be made.

2. Know what type of Investor or Buyer is Best Suited for Your Company – Want to sell to your employees? Sell to another company in your industry or part of your supply chain? Want the company to continue as a viable going concern after you leave ? All these options require a different game plan to achieve the desired goal. Understand which type of buyer/investor is right for your circumstances and how to best position the company so that this exit event occurs.

3. Put a Growth Strategy in Place Now – Despite our tough economic times, a growth strategy is imperative to being able to realize a future liquidiation event, no matter what type of buyer/investor you are targeting.

4. Recognize the Buyer/Investor is Acquiring the Future – More than ever now, they are not buying past performance, they are buying the future performance of the management team’s ability to deliver on the promise of the growth strategy. So the growth strategy has to be be well under way and producing results by the time you are ready to sell. The management team that implements this strategy are the people that will be staying with the firm after the primary shareholders leave.

5. Recognize Your Role as Owner Has Changed – If you are planning to sell, you need think of yourself now as an investor, not an owner and certainly not a manager. Your knowledge, key relationships and abilities have to be transferred to and found in your management team now, not the day after you leave.  You are not your company.

6. Deliver What You Promise – The number of companies on the market looking for exit strategies will double as boomers retire over the next ten years. Your company will have to stand out from the pack. Your company should have an outstanding solution or product offering and the financial performance in the balance sheet and income statement to prove it out. Your internal systems deliver exactly what is promised to customers in a way that makes it hassle free, unique, of high value and delivers recurring revenue. Check in with your target market. What do they think about your offering? Set up key performance indicators to manage toward the future, rather than viewing only through the rearview mirror.

7. Difficult People? Conflicted Workplace Culture? Growth and Change Will Be Almost Impossible. If you’ve got some rub points that make delivering customer value or financial performance unreliable, now is the time to deal with them , not later. If you’re struggling to change entrenched ways of working, poor performance, lack of alignment between strategy and action, then get help sorting it out. Learn how to take a different approach and get to the heart of the issues that block change, growth and ultimately profitability. There is a much better way which is far less painful.

8. Get the Right Advisors on Board – You will need an accounting group familiar with exit transactions and tax issues, a legal firm able to prepare the foundation for an acquisition so the deal goes through smoothly without skeletons jumping out at inopportune times and investment advisors to help package the company. Know who to get on board, how to find them and strategize when you bring them in.

You may need help with some of these Valuation Planning Steps. Get it sooner rather than later. For a private seminar on any or all of these topics, please contact us.

Vancouver Sun on Boomers Preparing to Sell their Businesses

Harvey Enchin of the Vancouver Sun did a story on the fact that boomer business owners say they want to retire in the next three to five years, which means selling their businesses but they have not prepared their companies to get the highest valuation. Here’s the story. http://www.canada.com/vancouversun/columnists/story.html?id=c9388f05-f1c7-4960-812f-b6c8b15b454a Why do you think business owners are not doing adequate preparation to make their businesses attractive to sell? Add a comment below.

David Lam

David Lam
Vice President with the Deloitte & Touche Corporate Finance Inc
Vancouver

David focuses on mergers, acquisitions, and debt & equity financing. Over the past year, David has completed 10 transactions in the Vancouver market. Previously, David was at TELUS Corporation where he held senior roles in Corporate and Business Strategy Development.

In these capacities, David advised executives on new business opportunities and critical corporate-wide strategic initiatives. In addition, David assisted and lead on various divestiture and acquisition mandates.

Prior to TELUS, David was the CFO for the Bailey Group of Companies, which included retail companies such as Liberty Furniture and WA-2 Water Company.

Industry and Functional Experience

• Consumer Products
• Technology
• Manufacturing
• Growth Strategies
• Capital Markets Strategies
• Acquisitions
• Divestitures
• Debt and Equity Financing

Selected Relevant Experience

• Assisted in buy side and sell side M&A advisory in the education sector
• Assisted the recapitalization of a BC based confectionery company
• Assisted in the sell side advisory for a leading specialty manufacturing company to a US public buyer
• Assisted in the sale of a building supply company to a large US publicly listed competitor
• Provided valuation and sell-side advisory to a publicly traded telecom compan

Click here to see all the speaker biographies.

Paul Corcoran

Paul Corcoran
Commercial Banking Area Manager
Bank of Montreal

I have been a banker for 32 years. In my current role I lead a team of Mid-Market Commercial bankers whose role is to bring new commercial banking relationships to the Bank, as well as promote the Bank within the business community. Prior to becoming a banker, I referred professional hockey with the World Hockey Association.

I am a graduate of Simon Fraser University where I graduated with a major in Economics and a minor in Commerce. I am a Fellow in the Institute of Canadian Bankers.

I am a Past President of the Westbank Chamber of Commerce and have been a Rotarian for the past twenty seven years. I am also actively involved as a TEC Associate – working with Chief Executives in a consultative environment.

My outside interests currently include the theatre, travel and golf.

I am married with two adult children. When my children were younger I was actively involved with youth sport.

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Seminar – Frequently Asked Questions

The Seminar: How to Maximize Your Company’s Worth: The CEO’s Guide to Becoming Prepared for Investment

How is this seminar different than others on Selling your Business?

Succession planning you do for yourself. Valuation planning you must do for your business so that investors have certainty your company will be a profitable investment going forward. This seminar gives you an in depth analysis of how your business makes sense to an investor and where and why it might not give you the value you had hoped for. Wouldn’t you like to know how to be attractive to investors before you put your business on the market? For every element that is lacking in your company, the value of your business decreases. This seminar puts you in control of insider information that rarely gets shared with you until its too late to do anything about it.

Is this seminar about Succession Planning?

No. This seminar is about getting your business investor ready. It is what we call Valuation Planning. Succession planning is about getting you personally ready to retire. Take this seminar 2-3 years before you start thinking about retiring and you will retire profitably. Succession planning only gives you a limited perspective on how to get ready to retire. This seminar focuses on how investors will view your business.

What is Valuation Planning?

Getting what you want for your business is not easy. Investors have a very different perspective on value than you do. There is no multiple listing service of comparable companies to yours that helps an investor determine value. They look through a number of different ‘filters’ or ‘lenses’ looking for the key indicators that tell them this is a company that will make a return in the future. The more points of value that are obvious, the more an investor assigns to the valuation – the price they are willing to buy the company for or the amount they are willing to lend for a buyout. Valuation planning let’s you see your company through the eyes of an investor to determine where your operation may bleed value (and therefore the price you may be offered) and how you can remedy these ‘leaks’.

Why is this seminar limited to companies with revenue over $8 Million?

Most simply, our investor network is interested in businesses of this size. We work with investments bankers that help businesses get acquired by private equity or corporate investors. Large businesses have a lot more preparation work to become investor ready than smaller businesses.

What will I learn that I don’t already know?

At the end of the day, you will have an in depth self-assessment on how prepared your company is to be sold for its maximum valuation. You will know where your weak points are, why they are problematic and what you can do to change these elements to increase your company’s attractiveness to investors.

I want to attend but I don’t want people to think the company is for sale.

We only go on a first name basis during the seminar. We guard your registration information and do not share it with anyone outside of our firm. There is no attendee list available at the seminar and no “at the door registration” to protect your privacy. Talk as little or as much as you want during the day. The choice is yours.

Who can attend the seminar?

Company owners and their CFOs who have revenues of $8 million or greater in the last calendar year.

Will I have one-on-one time with the seminar speakers?

All our speakers and consultants will be available after the seminar at the reception.

What is your cancellation policy?

If we don’t hold the seminar on the advertised date and you cannot attend the re-scheduled date, we will refund your money in full or you may opt for one-on-one meeting to learn the same material from the workshop.

If you cancel:

15-30 days prior to the date of the seminar, 50% refunded or your fee can be applied to the next seminar.

14 days prior to the seminar, no refunds are given but your fee can be applied to the next seminar or a one-on-one meeting to learn the same material from the workshop.

Dallas McMurtrie

Dallas McMurtrie
Senior Tax Manager
Deloitte & Touche LLP
Langley, B.C.

Profile
Dallas is a Senior Manager for the Deloitte & Touche tax practice in Langley. He has over 10 years experience in public practice serving clients in the tax services area. His experience includes advising clients on international tax structures, mergers and acquisitions, tax audits, and personal tax planning.

Prior to joining Deloitte, Dallas was with the Canadian Imperial Bank of Commerce serving in one of its treasury departments.
Dallas’ experience includes:

• Assisting foreign companies to acquire or dispose of Canadian interests.\
• Developing repatriation and global income tax strategies to reduce effective income tax rates.
• Advising clients on their dealings with the Canada Revenue Agency during tax audits.

His clients include several of the largest public and private corporations in British Columbia.

Professional Memberships

• Certified General Accountants of British Columbia
• Canadian Tax Foundation

Industry Focus
Consumer Business and Technology

Click here to see all the speaker biographies.

Grant Wallace

Grant Wallace
Vice President, CopperLion Capital
Vancouver

Grant is a founding member of the management team of CopperLion Capital and is active in the transaction execution, financial valuation, due diligence and administrative aspects of the fund.

Grant has significant experience in M&A and financing transactions, as well as business valuation.

Grant previously worked as Director, Corporate Finance & Treasury at Corix Group, a $300 million infrastructure systems company, where he was involved in corporate development including acquisition transaction structuring and due diligence. He was also responsible for corporate modeling and valuation, treasury services and investor relations.

Grant also spent seven years at Ernst & Young Orenda Corporate Finance in Vancouver and Toronto. At Ernst & Young Orenda he advised on over 30 successful acquisition, divestiture, financing, valuation and restructuring engagements.

Grant is a CFA Charterholder and a Chartered Business Valuator (CBV). He holds a Bachelor of Commerce degree from Queen’s University.

CopperLion Capital Website

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Jeremy South

Jeremy South
Partner, Mergers and Acquisitions
Deloitte & Touche LLP
Vancouver

Jeremy is a Partner leading the Corporate Finance and Transaction Services practice for Deloitte, based in Vancouver.

Jeremy specializes in the delivery of strategic advice to clients and also lead manages transaction execution.

Jeremy has over 20 years of financial, investment banking and private equity experience in North America, Europe and Australia.

He has experience across a wide range of industries but he has recent experience in the energy, technology, manufacturing, consumer products, leisure and service sectors. Jeremy has held senior positions with major investment banking firms in Europe including NatWest Markets, Alex. Brown and Deutsche Bank and was responsible for transactions which raised over $3bn in investment capital. He has participated in large scale global financings of debt and equity.

He recently joined Deloitte from Second City Capital Partners, a leading North American private equity fund, where he was Managing Partner. Second City Capital Partners is a leading independent provider of innovative, tailored financial solutions to mid-market companies in North America. He has worked with growth companies across North America since 2000.

Mr. South is a graduate of Monash University in Australia with a degree in Economics and holds a Chartered Accountant designation.

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Karen A.R Dickson

Karen A.R Dickson,
Partner
Miller Thompson LLP
Vancouver

As a member of the firm’s Corporate and Commercial practice groups, Karen provides legal advice to clients in the areas of business law and finance.

In particular, Karen’s work focuses on banking law, acting for a major Canadian Bank for automotive and asset-based financing. In addition, she has extensive experience acting for clients in the sale or acquisition of shares or assets, security over personal property, general business contracts, corporate re-organizations and shareholders’ agreements.

Karen has lectured for Continuing Legal Education on several aspects of the Personal Property Security Act. She has also been a guest lecturer for the Professional Legal Training Course program on Buying and Selling a Business, Debtor-Creditor Relations, Incorporations and the Personal Property Security Act.

Karen has been involved in the community for the past 25 years. She has served as a director of Neighbourhood House, Touchstone Theatre, Anna Wyman Dance Theatre, and The Vancouver Playhouse. Most recently, she served as a governor on the board of Vancouver Community College, from February 2002 until July 2005, and as Chair of the Governance Committee for the Board.

Karen is committed to providing excellent legal services to all her clients.
Education

• University of British Columbia (LL.B., 1981)
• University of British Columbia (B.Ed., 1977)

Affiliations

Member, Canadian Bar Association, Business Law Section and Banking Section

Miller Thompson web site

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Ken Burnett

Kenneth N. Burnett
Partner
Miller Thompson LLP
Vancouver

Ken Burnett is a senior partner of the firm and offers a broad range of advice to clients in the areas of corporate, commercial and general business law.

Over the years, Mr. Burnett has provided strategic advice on a number of major commercial transactions, including those relating to aviation matters, joint venture agreements, commercial financing, taxation, transportation, and wills and estate planning. He also advises foreign investors on ownership vehicles for investment in Canada, and has extensive experience advising on pensions and share ownership plans as well as complex corporate structuring, restructuring and acquisition matters.

His clients include transportation companies, resource companies, manufacturers and investment groups, a variety of business organizations and private individuals. He is also actively involved in advising not-for-profit groups and presently on the BC Law Institute Committee recommending changes to the Society Act of BC.

Mr. Burnett is an active author and speaker. Among his efforts, Mr. Burnett has written: “Buying and Selling Aircraft in Canada” (Air and Space Law Conference – American Bar Association, August 2000), “Unincorporated Business Associations” (Negotiating and Drafting Major Business Agreements Conference, March 2006), and “The Set-up and Maintenance of Charities and Not-For-Profits” (CLE Conference, October 2006). He is a former managing partner of the firm.

Mr. Burnett’s philosophy has been to provide clients with services based upon his experience and his ability to obtain a complete understanding of the client’s business and its overall objectives.

Education

• University of British Columbia (LL.B., 1967)
• University of British Columbia (B.A., (Economics and Political Science), 1964)
• Year of call
• Called to British Columbia Bar, 1968

Affiliations

• Member, Canadian Bar Association, Successions, Trusts and Fiduciary Relationships, Business Law, International Law
• Current Chair of the Air and Space Law Section of the B.C. Branch Canadian Bar Association
• Former Chair of the National Air and Space Law Section of the Canadian Bar Association
• Secretary of Pacific Coastal Airlines Limited
• Member of the Canada/Korea Business Association, Association for Corporate Growth, American Bar Association, Vancouver Board of Trade, Society of Trust and Estate Practitioners (STEP)
• Former Chair of Successions Trust and Fiduciary Relationships (BC Branch)
• Chair of Editorial Advisory Committee of the Probate Practice Manual for BC Lawyers

Additional information

BV Rated, Martindale-Hubbell

Miller Thompson website

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