This short presentation is an introduction to the Azure Partners exit planning process.

2. What do we do?
 We build businesses
 We have done it ourselves
 We now do it for a wide range of clients
 And it works, even in tough times. Our 5 most engaged clients
returned results of:
Increase in: 2008 2009 2010 2011
Turnover 31% 6% 10% 48%
Profit 101% 18% 126% 74%
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3. Who are we?
Name Discipline Expertise and Experience
Mike Robson General Management, People, Expertise as MD /FD in leisure, electrical engineering and
Finance and Exit publishing in UK, Europe and Australia. Developed and then
sold his own company
Paul Chapman General Management, 20 years experience of high growth companies in UK, USA
Marketing and Sales and Far East in MD, Marketing Director and Sales Director
and NED roles. IPO experience on NASDAQ
Nick Brown General Management and Considerable experience in the process of buying and selling
Operations companies, and has run, developed and built companies
both in the UK, Europe and the US.
Peter Henry General Management and With a classic marketing background Peter has extensive
Marketing experience in marketing director and NED roles in blue chip
and SME companies.
David Mellor Commercial/Investment Banking and Investment experience as Investor Director of
Banking and Private Equity 3 software companies. Associated with Cass Business
School.
Nigel Pearcy Marketing, Sales, Operations, MD/CEO and Operations Director in a wide range of private
General Management and corporately owned service and production companies.
Helped develop and grow high margin, profitable businesses
to successful exits
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4. How do we do it?
 For seven years Azure have worked alongside business owners
to create and then implement effective strategies
 Using the experience, processes and business tools available to
us we provide pragmatic business advice and support across all
business disciplines
 We have the skills, commercial experience and necessary
knowledge to help you enhance the value of your business
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5. Why work with Azure Partners?
“I am a massive fan of the right business advisors. I wish I had not been so
arrogant in the early days of my business and had taken soundings
from people” - Michael Jackson, the former Chairman of Sage and now Chairman of Elder Street Investments
“If I had not hired Azure I would have had to hire another Director at
greater cost” - David Connaway, Azure Partners client
“Azure really gave us three things – expertise in marketing and sales, a
vision and clarity of purpose that we didn’t have before, and a discipline
that made us focus on our strategic objectives as well as the day-to-day
business.” - Peter Copley – Azure Partners client
“The Azure Exit Planning Process was very valuable. It kick started the
implementation of a coherent growth and exit strategy to satisfy the
ambitions of all of our shareholders. Of more importance to us, the
process brought the Board closer together so that we work as a unified
and effective team” - Managing Director, Building Maintenance and Systems Company”.
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6. What does the Exit Planning Process deliver?
 An assessment of the risks and opportunities facing the
business and recommendations for improving value before
sale
 An assessment of the exit routes available to you
 An outline profile of potential buyers and their likely
requirements
 The likely range of valuations achievable on sale
 An action plan and timetable to achieve an efficient sale for
optimum value
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7. Shareholder objectives on sale
For most shareholders of private businesses, the key objectives
when selling are:
 To find three or more acquirers willing and capable of bidding
for the company at about the same time
 To organise and present the business in such a way that the
transfer of ownership is smooth and relatively quick
 To be able to turn down unacceptable offers
Effective planning and implementation puts you in control
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8. Sales types and valuation
Can you put your business in the white
zone?
Valuation on Sale
Fire Sale Financial Sale or MBO Strategic No Sale –
Sale Plan B
Strategic sales typically generate the best valuation (and income) for owners.
Azure can help ensure your sale is strategic, generating the best valuation.
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9. Plan B
Facts of life:
 Almost all businesses are saleable
 Not all businesses are saleable at a price acceptable to the
owners
 In some cases a greater value can be extracted through
dividends than through sale
Solution:
 Azure Partners release business owners from the day-to-day
running of their business by putting appropriate systems and
professional management in their place
 This enables you to retain ownership of the business and draw
income from it with the confidence that it is properly run
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10. Before sale
Things to consider:
 Who will want to buy my company – and why?
 How can I develop strategic value for the potential acquirers?
 How can I make it less reliant on me?
 What am I going to do post sale?
Things to do:
 Continue to develop and grow the business and opportunities
 Carefully assess, select and pursue your sale options
 Determine a sale price that is acceptable to you and realistic
 Define a Plan B in case you do not achieve an acceptable price
 Maintain staff morale
Define an exit plan and successfully implement it
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11. Sample Exit Schedule
Define key objectives/
opportunities/ issues/ actions
Define KPI's to maximise price
Establish exit plan
Execute exit plan
Plan B?
Maintain business performance
Identify broker and advisors
Generate sale documentation
Approach potential acquirers
Establish shortlist
Due diligence
Negotiations
Agreement
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Year 1 Year 2 Year 3
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12. Advisor activity
Corp. Fin.
AZURE
Lawyer
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
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13. Clients said:
“The Azure Planning Process was very valuable. It kick started the
implementation of a coherent growth and exit strategy to satisfy
the ambitions of our shareholders”.
MD – Building Services Company
“We had no experience of selling a company, and we recognised
that it is a complex business which you have to get right. We
therefore asked Azure to advise and guide us through the
process”.
“Their input was invaluable and we completed a successful sale at
a value in excess of what we had hoped for, whilst also meeting
all other objectives and requirements”.
Partner – Insurance Broker
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14. Contact Azure Partners
For more information about Exit Planning and how to complete the
Azure Readiness Review:
 Website: www.azurepartners.co.uk
 LinkedIn: www.linkedin.com/company/azure-partners
 Phone: +44 (0)207 100 1233
 Azure Partners
New Broad Street House
35 New Broad Street
London
EC2M 1NH
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