w-group.com w-group.com w-group.com TOP 5 STUMBLING BLOCKS TO NEGOTIATING A DEAL TRANSACTIONAL PLANNING FOR THE EXIT STRATEGY
Top 5 Stumbling Blocks to Negotiating A Deal
Apr 12, 2017
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TOP 5 STUMBLING BLOCKS TO NEGOTIATING A DEAL
TRANSACTIONAL PLANNING FOR THE EXIT STRATEGY
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GROUND RULES Questions
• Attendees are in listen-only mode • This webinar is being recorded for future on-demand playback • Your participation represents acknowledgement that we are recording
• Tweet questions & comments to: #WelchGroup
Windows Mac Tablet
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Stephan May, MBA Managing Director WelchGroup Consulting [email protected] @WelchGroup
PRESENTER
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SERVICES
Selling Acquiring Financing
Management Buyouts Performance/Value
Enhancement Business Valuation
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WHAT WE’LL COVER
Transactional Planning Keeping the deal “on the rails”
• Financials
• Vendors
• Customers
• Deal Expectations
• 3rd Party Advisors
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FINANCIALS
Buyers Want Data! Are You Ready To Deliver?
DATA By:
Date (Day/Month/Year) Business Line
Vendors Employees (Sales Reps/Contractors, etc.)
Customers Distribution Channels
Product/Service Line Geographic Region
Ex: “Please provide sales and profit margins by major product and service offering, by major customer, geographic region, distribution channel by month-to-month for the last 3 years and projected for the next three years”
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VENDORS
• Most vendor contracts have automatic break-up clauses in the event of a change in control.
• Deals can be killed or delayed because of a Vendors’ inability to be flexible or timely in transferring contracts.
Transferring Vendor Contracts Can Be Like Moving A Ship
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CUSTOMERS
You’re Buying Or Selling Cash Flow. How “Transferable” Are The Clients?
• It is essential to determine if clients can
be transferred to the new party. • Potential issues that can complicate the
transfer ₋ vendors ₋ contracts ₋ relationships
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DEAL EXPECTATION
Have A Game Plan, Don’t “Wing It”
• A thorough comprehension of the deal • Ability to clearly articulate the opportunity to
the other party
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3RD PARTY ADVISORS
Too Many Chefs And Not Enough Cooks
• Deals can be fun and exciting • Know when to bring in the right
person at the right time
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Stephan May, MBA Managing Director WelchGroup Consulting [email protected] @WelchGroup
Q&A
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