Shareholder Value Stewart Millington Business Mentor.

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  • Shareholder ValueStewart Millington Business Mentor

  • Acquisition & Sale The ProcessIs your company ready for sale?What influences the price?Where does acquisition fit in the strategy & am I ready to make an acquisition?The targeting process

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  • Is your company ready for sale?Where does acquisition fit in the strategy?

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    Two Key Questions

  • The Role of the Managing DirectorCompany FoundationThe Profit Enginewww.avondale.co.uk

    Management Strategy

  • The Role of the Managing DirectorCompany FoundationThe Profit Enginewww.avondale.co.uk

    Management Strategy

  • The Role of the Managing DirectorCompany FoundationThe Profit Enginewww.avondale.co.uk

    Management Strategy

  • The Role of the Managing DirectorCompany FoundationThe Profit Enginewww.avondale.co.uk

    Management StrategyCompany Strategy

  • Time the Hidden CostBuying or selling a company takes up a huge amount of time.It is a highly skilled role that only the MD or Senior Director can undertake.While undergoing this process, it is imperative that you keep delivering the financial numbers.

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  • What Influences the Price?www.avondale.co.uk

  • What Influences the Multiple?www.avondale.co.uk

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    Multiple Influencers

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    Multiple Influencers

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    RiskMultiple Influencers

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    MultipleMultiple InfluencersRisk

  • True Growth - Equity Valuation Driverswww.avondale.co.uk

    Benchmarked performance against competitionTurnover GrowthProfit Ratios

  • Equity Valuation DriversIncome The Client BaseThe Four Areas of Managementwww.avondale.co.uk

    Brand NameCompany StrategyCompany PositioningBrand NameStrategic Track RecordThe Four Areas of ManagementMultiple

  • Equity Valuation DriversIncome The Client BaseThe Four Areas of Managementwww.avondale.co.uk

    Brand NameCompany StrategyCompany PositioningBrand NameStrategic Track RecordThe Four Areas of ManagementMultiple

  • Equity Valuation DriversIncome The Client BaseThe Four Areas of Managementwww.avondale.co.uk

    Brand NameCompany StrategyCompany PositioningBrand NameStrategic Track RecordThe Four Areas of ManagementMultiple

  • Equity Valuation DriversIncome The Client BaseThe Four Areas of Managementwww.avondale.co.uk

    Brand NameCompany StrategyCompany PositioningBrand NameStrategic Track RecordThe Four Areas of ManagementMultiple

  • Equity Valuation DriversIncome The Client BaseThe Four Areas of Managementwww.avondale.co.uk

    Brand NameCompany StrategyCompany PositioningBrand NameStrategic Track RecordThe Four Areas of ManagementMultiple

  • The Targeting Processwww.avondale.co.uk

    What is your acquisition strategy?What are you looking to acquire and why?Why should they sell to you?How are you going to convince them to sell if they are not for sale?How are you going to leverage the acquisition?Cost savings alone are not enough.Truly successful acquisitions always have the additionality factor

  • Targeting Criteriawww.avondale.co.uk

    The Management of RiskMarketCompany

  • Targeting Criteria Market Sectorwww.avondale.co.uk

    Market sizeMarket growthProfitability/margin potentialStrength of competitionStrategic fit with your own company

    Weight each criteria and score all sectors

  • Target Mapwww.avondale.co.uk

    Market SegmentsMarket Segments Geographical areaProduct/Service Sectors

  • Targeting Processwww.avondale.co.uk

    Geographical AreaMarket SegmentMarket SegmentMarket SegmentMarket Segment%ABCDProduct/Service SectorsProduct/service 190105080Product/service 260502570Product/service 345406065

  • Targeting Criteria The Companywww.avondale.co.uk

    Benchmarked financial performance vs competitionThe quality of the income stream and clientsThe strength of the management team and systemsBrand name and reputationStrategic track record and pipelineSize of target/fit with your companyCULTURAL FIT

  • Think Long, Think Hard & then be bold

    If in doubt DONT.

    Better to walk away and write of the time and money spent rather than to proceed.www.avondale.co.uk

  • Key to Successwww.avondale.co.uk

    Be preparedInvest timeBe strategicSeek advice