Creative Deal Structuring

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Creative Deal Structuring
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Years ago, our first buyer...

• Told us they would buy a business at ANY PRICE
  offered
• Providing that he was able to create the STRUCTURE

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Creating the deal structure

• How much is paid for the business
• How and when it is paid
• All the payment components
• including equity
• the interest rates used
• and the timing of the payments
• Plus other supporting items including
  contingencies

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Successful transactions occur...

• When seller and buyer are clear on what they want
  to accomplish
• Both are open to innovative ways to get the deal
  done

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Owners decision to sell...

• Driven by personal , financial and lifestyle
  goals
• Biggest motivators are retirement, gaining
  liquidity or even burnout

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Some sellers

• Want to grow their business and put more of their
  money at risk
• Want to be a part of a growing organization

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Final structure of the deal...

• When all business issues are resolved
• When all targets are identified
• Contingencies are worked out
• Payment components are agreed upon

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Payment components...

• Can be one or a combination of
• CASH!
• Notes
• Earnout
• Stock

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• HOW TO CRUSH IT DELIVER A WORK
• Download the full unrestricted template(s) from
  the members area
• Use more than one template alternative to cover
  all the angles
• Cut and paste from each to produce one unique to
  your situation
• Determine the thought areas that are critical for
  delivering excellence
• For the excellence areas do a competitive
  benchmarking assessment by using the market
  research and market intelligence tools
• State of the industry current status and trends
• State of the competition existing, new, and
  those in related markets
• State of your company get honest internal and
  external views
• From analysis of the data in 3, develop
  alternative options
• Out of the box thinking use the creativity
  tools to generate unique ideas
• Test them and get input and feedback use the
  collaboration tools to add value from others with
  different perspectives
• Narrow down to the best option for the
  excellence areas
• Complete the template using the best narrowed
  down option
• Develop eye catching reports that communicate
  your results very well and cause reviewers to be
  awed by its quality
• Use the designer power point graphics
• Use the designer excel charts
• Ask for help at any point in the process
  contact us online or offline.
• Present your report and receive praise for its
  comprehensiveness and creativity. You are now
  viewed as different from the pack.

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