1. DAVID BUCHAN Making Your Successful Company Valuable

5. How is Value Determined PRIMARY MEASURE OF CASH FLOW EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION EBITDA $$$ CASH FLOW A B C MULTIPLE Quantifiable / Measurable Subjective Assessment DEBT FREE BUSINESS VALUE TOTAL ENTERPRISE VALUE (TEV) X MULTIPLE RANGE LOW HIGH REDUCING RISK EBITDA GOES AW AY RATE OF GROWTH OF EBITDA POSITIVE EXTERNAL ENVIRONMENT OWNER CONTROLS OWNER BENEFITS FROM

6. Knowledge is Power KNOW Your Customers – Show they love you Buyers fear loosing them and being overly dependant upon them Demonstrate the strength of the relationship WITH THE ORGANIZATION, NOT THE INDIVIDUAL Providing service or unique features to customers is highly valued – reduce vulnerability to low cost producers Reduce customer concentration Your Market – Define your position in it Get market data for your business – don’t assume that others understand your market/business Quantify the market – dollars and units – and where you fit in locally, nationally, globally Use it as a road map to opportunity – buyers value growth highly Define market METRICS - Make sure that the whole company is aligned with them Your Competitors – Be different Understand their products, strategies and financial capabilities Compete where you can win with something they cannot offer – personal service in a land of giants C B

11. Action Items To Generate RESULTS KNOW MARKET KNOW CUSTOMERS KNOW COMPETITORS MAKE IT ROUTINE MAKE IT TRANSPARENT GROW EBITDA