Green Finance Lending Group Business Presentation

CHV • 2020

WORDS OF WISDOM

Timing the Market to sell works only well when you are prepared to sell , and

you can move very quickly.

There are no guarantees that a Business will sell, nor that there is a definite timeline. It is however a fact that 80% of Businesses during the process of Selling will lose value as the Owner is no longer paying attention and growth and profits stagnate or even slip. Business Brokers / Intermediaries are experienced professionals to handle deals Confidentially and with absolute Integrity and are sensitive to the timeline

The Business Broker / Intermediary Value Proposition to the Owner:• We lead the process of selling • The Owner runs the Business• We bring the expertise

• To run a confidential process• to prepare the Business to Exit• Offer a Market opinion of Value• Position the Business to attract the

highest potential of Buyers • Develop a Road Map to Action if

there is a GAP in Valuation and Owners Expectations

CHV • 2020

Here is the CHV Group LLC Master Plan to Prepare the Selling Process:

• Analyze the Business and Industry to check• Are we meeting Industry Financial

Benchmarks• Customer Analysis, % per Customer• Profit Analysis by

• Customer• Product /Services

• Calculate adjusted EBITDA, define Quality of Earnings

• Prepare an opinion of indicative Market Value

• Explore Market options and the corresponding Value

• Explore deal structures and Tax implications

Sellers Time to decide , we support him with the data and answer his questions

CHV • 2020

Here is the CHV Group LLC Master Plan to Guide the Selling Process:

• Discuss Due diligence requirements• Establish the Marketing Strategy, Best Buyer

Scenario• Compile a list of Potential Buyers (Strategic)• Prepare Confidential Teaser

• Send Teaser to Potential Buyers• List Business on relevant Websites

• Prepare Confidential Business Memorandum

• Qualify Interest• Prepare best Interest to be presented to

Seller• Assist negotiating Term Sheet, LOI• Assist in the closing

• Due diligence• Agreements • Closing

• Family Members• ESOP • Industry insider – Competitor • Strategic• Add on or Platform

• PEG / Family Office• Individual Buyer / Operator

THE ROLE AND VALUE

OF THE INTERMEDIARY

Tony Koechli

• Maintains confidentiality• Educates• Brings Expertise• Works with a team• Customizes marketing • Buffers emotions• Negotiates• Keeps the deal going,

Focus• Lets you Focus on the

Business

THE DO’S

AND

DON’T’S

IN

SELLING

CHV • 2020

• Spend sufficient time to prepare• Build your Team of Experts• Build value based on appraisal,

location and Industry• Build value based on Intrinsic

value and professional appraisal• Select a Business Intermediary

with care• Have audited reports for at least 2

years• Develop your negotiation skills• Let your Broker find and qualify

potential Buyers• Qualify the Buyers ability to service

your Seller financing• Get Tax advise on all aspects of

Selling • Working Capital structure, Debt

does not kill Companies, Cash Flow will

THE DO’S

AND

DON’T’S

IN

SELLING

CHV • 2020

• Overprice the Business• Expect to be paid Cash• Fail to consider some Seller

financing • Fail to consider a Key Employee

workout • Overlook the possibility to sell to a

Competitor• Be unprepared to furnish all

important documentation• Forget to consider your buyers

point of view• Disregard investigation of an

employee owned ESOP• Fail to get Tax council on all issues

on the sale• Be unprepared to continue

running the Business

Timing

involved

in the

Sale

process

CHV • 2020

Initial Steps going to Market Week

Execute NDA 1

Review Financials and Business Plan 1

Valuation 1

Establish Sales Price and Terms in Detail 1

Sign Listing Agreement 1

Teaser and Listing information complete 1

Website posting complete if appropriate Ongoing

Confidential Business Memorandum 2-4

Contact all known propsective Buyers 2-4

Search all Websites for Prospective Buyers 2-4

Letter to all potential Buyers 2-4

Phone follow up letters sent 5

2nd Potential Mailing 6

Phone follow up letters sent 7

3rd potential Buyer Mailing 9

Phone follow up letters sent 10

Buyer Evaluation Ongoing

Potential Buyer Presentation Ongoing

What

Happens

the Monday

After?

Sellers remorse - Every single founder wonders if they could have sold their business for more than they got. No, move on!

Once you sold, you have sold. Hopefully, your transition Team has protected you with a contract that lets you sleep at night and has negotiated you enough money to enjoy retirement.

Passion, is most likely what made you a great owner and the appreciation you received from Customers and Employees –now what?

✓ Find a new passion outside of the Company life, here some ideas:

- rest and contemplate for a while- exercise, walk, hike, - engage in charities- identify values important to you, match with future activities

- work off your bucket list- learn a new skill