building businesses buyers love to buy
DESCRIPTION
A set of proven Playbooks to transform any business into one that Buyers will LoveTRANSCRIPT
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Building Businesses Buyers Love to Buy
Translating Visions into Remarkable Businesses
Ian2
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TPP – Positioning StatementI have repositioned and grown over 20 businesses covering the last
30 years.19 achieved premium valuations on exit at values in the $10m to $100m rangeOne remains independent, Teamstudio ranked in Software 500’s hall of fame,
Background
TPP4
6 US Based ‘C’ level Operators Your business is either remarkable or
invisible. Your choice. Partner with us to assess that choice and
do something about it
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Odds of Selling out?
23 million Private CompaniesAnecdotal evidence from M&A league Tables 20,000 sell for > $10m (High)That’s a 1 in 1111 chance
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The Magic Years
ExitProcess
WealthGeneration
Early Years
1 to 10 years 2 to 5 years 9 months
• Tough• Dip• Belief MAGIC
A B C
715 Reasons that drive value
Call them CPMs - Critical Performance MeasurementsA way of calibrating private company shareholder value
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Critical Performance Measures
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TPP – Positioning Statement
Compelling Stories & Business Results
#1
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The Importance of Positioning
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METRICS
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PyramidsMore time to create a more focused business
Pyramids
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About ROAM
ROAM Data provides patented mCommerce software, hardware and services that enable merchants to win customer spend and loyalty.
ROAM Data securely delivers faster more convenient transactions for small and large merchants across virtually any mobile device.
ROAM’s mission is to enable mCommerce to improve lives.
Boiler Plates
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TPP – Positioning StatementTop 5 Independent Player
#2
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TPP – Positioning Statement
#2
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TPP – Positioning Statement
Sales & Profits Growing at 25%
#3
DIAGNOSTIC APPROACH
Research & Preparation
PHASE 1
Specific Client Preparation
Key Cast of Characters
Indicator Questions
Explore Consequences of Current Processes
Including Cost
Summarize How We Move Forward – Timing is Good
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PHASE 2
Prioritize Account Management
Hyperqualification
Determine Priorities
Value Assumptions Validated
Initial Conversation Deployed
Ensure Realistic Timeline
Sign Off Success Criteria
PO Issued
Delivery and Installation
Post Sales Measure
Referral
Agreement/ Summary for Moving Forward
Alternatives Explored and Recommendation and Proposal
PO, and Delivery
DESIGN DELIVERDIAGNOSEDISCOVER
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Ensure Realistic Expectations
Recap Document
Explore Alternatives
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PHASE 3PHASE 2 PHASE 4
Ke
y S
tep
s
Including Value Agreement
Cause of Problems
Proposal Issued 16
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TPP – Positioning Statement
#3
Discovery/Assessment/PerspectiveDiagnostic/Deal Definition/Pain Point ExplorationValidation/Usage/Due DiligenceFulfillment/Delivery
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TPP – Positioning Statement
High Growth Market – 3 Year View
#4
Mature Markets? RETAIL –Modcloth 17,191% - $16m
SECURITY – Lifelock – 11,474% - $131m
GOVT SERVICES – Luke – 16,637% - $37m
COMP H/WARE – Maxlinear – 8784% - $51m
#4
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TPP – Positioning StatementAward Winning Products
#5
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TPP – Positioning Statement
#5
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TPP – Positioning Statement
Legacy Products Don’t Dominate
#6
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TPP – Positioning Statement
#6
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TPP – Positioning Statement
#6
DEV SALES Marketing OPS
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TPP – Positioning Statement
EBIT > $2m
#7
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TPP – Positioning Statement
The bigger you are the bigger PE
+
GROWTH = MAGIC
#7
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TPP – Positioning Statement
Key Customers < 5% of Sales
#8
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TPP – Positioning Statement
A killer flaw – buyer beware
#8
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TPP – Positioning Statement
Top Ten Managers are World Class.
#9
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TPP – Positioning StatementAll Senior Managers Are
Dispensable
#10
Good People On the Bus - Poor fit Off the Bus
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TPP – Positioning Statement
Highest Margins in Industry
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Audit of Signals
Accounts Dept = Metrics Dept
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TPP – Positioning Statement
Biz Model – Sustainable Annuity
#12
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TPP – Positioning StatementHMRC spends £765m on IT outsourcing deal
Aspire contract, which started in 2003 and will run until 2017,
dominates the agency's spending with IT suppliers.
#12
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TPP – Positioning Statement
Accounts Audited
#13
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TPP – Positioning StatementStaff Moral & Engagement
#14
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TPP – Positioning Statement
#14
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TPP – Positioning StatementLegal Contracts & Filings
#15
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TPP – Positioning Statement
The next 3 years will be an unusually attractive time to build remarkable businesses to achieve premium exit valuations in 2014.
Why Now?
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Translating Visions into Remarkable Businesses
Blog – The Smith Report http://www.smithreport.biz/blog/