brg privatus ci3o business deck book

BRG Privatus CI3O

Entrepreneurs & their Business

Pitch Book. 2015

SenseSense

IdentifyIdentify

SeizeSeize

TransformTransform

INTRODUCTION

We listen. Then we either provide options or find answers that provide independent strategic guidance to entrepreneurs, family, and their trusted advisors;

1) options for the business; equity sale, divestiture, merger & acquisition, growth, transfer or retain and transitions

2) opportunities plus risk management for owner and family; and

3) strategy preparation and navigation of these elements to remain dynamic

Engagements are customized and priced for Middle Market to Small Cap Companies.

IT’S TIME FOR ACTIONYour Business. Your Options. Your Future.

Who

Privatus CI3O @ All Rights Reserved

A family with business interests of most all sizes, board and C‐suite, their staff and advisors deserve to know their best options & opportunities

• $10Million to $50Million – lower midmarket

• $50Million to $500Million‐ middle market

• $500Million to $3Billion – larger private and small cap public markets

TeamRobin Coady Smith

Founder, Strategic Value Architect & Strategist

• Robin served as Chief‐of‐Staff to a prominent, multi‐generational, 11‐figure family office and operating business, the stock of which was tied up in trusts. Lofty capitalist goals but no true focus to getting there. No strategy.

• She has 3 major unplanned transition events under her belt due to premature death, departure or incapacity.

• She has 2 planned business transactions/transitions and hundreds of wealth transfer transitions.

• High EQ : The major transaction stumbling points involve The 6T’s; transfers, transactions, transitions, transformation, taxes and trouble.

• Market: affluent entrepreneurial families and advisors, family business to small cap public companies

• Reasons: advance preparation provides more options for the business and opportunities for owner and family, with less money left on the table. We help families and advisors to align and to act with clarity around the 6T’s .

• A well planned transition roadmap and strategy eliminates stress, perceived loss of control , uncertainty of decisions or how to execute getting from here to there.

Carl Lloyd Sheeler, PhD, ASA

Co-Founder, Strategic Value Architect & Strategist

• Carl is a successful entrepreneur, corporate and military officer and strategist.

• Berkeley Research Group, Managing Director and Global Group Leader, Family Office‐Business Strategies.

• BRG’s Strategic Value Architect shaping company and family values with constituent intake/alignment, operational audits, due diligence and risk management skills.

• He is also chief‐of‐staff of a prominent family office in the Bay area

• Market: affluent entrepreneurial families and small cap public companies and advisors

• Reasons: minimize risk and enhance value using a strategic framework that begins with constituent intake to identify “gaps” and misalignment and ends with effective plan execution.

• He has presented or written for John Wiley & Sons, the American Bar Association, the American Institute of Certified Public Accountants

• He has completed 1,200+ engagements and testified as an expert on 165+ occasions such as shareholder disputes and breach of fiduciary duty.


Too Many Set the Bar Too Low For Success

“The greatest danger for most ofus is not that our aim is too highand we miss it, but that it is toolow and we reach it”

Michelangelo


…With a Tactical Focus & Multiple Lenses


Owner/Family

Trusted Advisors

Business Advisors

FinancialAdvisors

Legal & Tax

Advisors

Usually cash flow and tax minimization focus

Technical approach; limits a strategic or longer view

Sustainable growth of the business Think like a public company investor with emphasis on

capital appreciation, not solely dividend yield A longer term role of the business to the family Differing Advisory Lenses‐ different interpretations

& solutions

Business Challenges


At Different Times, Common Operating Business Challenges Arise

How to get to the next level – leverage of BOTH financial and human capital

Governance, Relationships, Risks, Knowledge

Owner Challenges


Transitions Involve Unfamiliar Decisions

Premium expectations, but subpar results

Nominal interest in retirement, but lofty ambitions

New leadership disputes, but no longer view focus

Lower net proceeds post liquidity hoping for higher from riskier investments

The Statistics for Business Transactions & Owners


Upwards of 86% of owners are unable to transact their business14% who transact, less than 10% achieve a “premium” outcome

THE OLD APPROACH IS A BUSTLET’S DO SOMETHING NEW

… The Risk Lens Often Loses Its Focus

• Unplanned disruptions/ transitions

• Constituent opinions

• Life cycle position• Ever changing points of interest

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Why Begin With the End in Mind?

“If you want to do something new, you have to stop doing something old.”Peter Drucker


Our Initial Offering


• Shaping a Thriving Businesses

AND/OR

• Risk Drivers; Identify, Measure, Manage, Mitigate for:• A sale , transfer or gift• Divestiture• Merger/Acquisition• Retention/Growth

The “softer” family centric interests & expectations, emotion based, around the business, liquidity/ transition events and the future:

These are the base level for which all business owners and families are entitled to clarity around:• What are my options?• How do I get there from here?• Simplifying technical guidance into a clear roadmap• Paths for wealth management • Paths for next endeavors & next generation• How to adopt a strategic, longer view and focus

Business (Technical)* Family & Advisors (Empathy)*

*Specific Project & Retainer Based Services

We Begin With Your End Game


Those that can answer the following questions can get “There”.

1. How do we define wealth and success?

2. How do we scale (“grow”) holdings?

3. What are our planned and unplanned transitions?

4. What are our options for liquidity?

5. What is our strategy to get to there from here?

Service in Action: a blend of technical & empathy skillsA Business Case• CEO desired to step down

• Family leadership disputes ensued

• Disagreement on low offers, the CFO reached out to Privatus to;

• help the business and family understand what contributed to the low offers

• create timelines; define a successor for the business so CEO could step down

• evaluate offers independently and discuss other options for the business and for the family.

• Concepts became a clear vision and a road map around “What should the business and/or our family’s wealth look like over 5 to 10 years?”

• Simplifying and aligning family and advisor technical guidance into a roadmap.

• The decision was made to keep the business and grow it.

• We executed strategy to ensure the company remained dynamic, streamlined decisions, “no plan” became a strategic plan.

• Dissent was reduced as strategy and options added clarity. We helped the family and a new board to adopt strategic thinking, hire anew non‐family CEO who could achieve a 10 year growth plan. Strategy for the board transformed its purpose to dynamic governance, optimizing shareholder value and risk management.

• We doubled the value of the business in 2 years while the family retained majority control.


Privatus CI3O & Berkeley Research Group, LLC Uniquely Positioned to Exceed Expectations


Family Centric Focus, A Thriving Business, Strategy & Alignments enables:

• Premium business value

• Better outcomes with cohesion for owner and family

• More options for the business

• More time for the owner

• More opportunities for owner and family

Privatus CI3O & Berkeley Research Group, LLC Uniquely Positioned to Assist Your Journey Becoming a Conscientious Capitalist of Significance


How and Why Enduring Capitalist Families are Different

Is a Capitalist Role Right for You?• Business Success – From the beginning the business has a strategic purpose. IF there is a transaction it’s

while the business is intact, growing & profitable

• Other Endeavors – begin early, grow in prominence. The reward is historical recognition.

• Family Legacy ‐ What endures and prospers with remembrance and respect for the entrepeneur. When

family members flourish in their own right and contribute to the family legacy, these are the best.

Capitalists learn early to invest in diverse knowledge, insight and skill resources that can be leveraged.

Business Model


IdentifyIdentify

SenseSense

SeizeSeize

TransformTransform

ExecuteExecuteFees are influenced by the use of staff, advisors ( existing/new) and BRG/Privatus/Founders Group resources. An ecosystem may involve family and/or business relationships that influence decisions, expectations and outcomes. Constituents include, but may not be limited to, stakeholders, such as founder, C‐suite, key staff, family, clients, vendors, board, key shareholders, personal and professional associations, bankers, insurance, wealth, tax, legal and family business professionals.

Technical projects are based upon man‐hours or man‐hours at rate range between $750/hour to $175 per hour plus a success fee with the latter having a lower upfront fee for more “skin in the game” (results oriented.)Empathy projects are retainer based for a defined period of time.

Building Dynamic Businesses & Strategic, Thriving Multi-purpose Business - Family Office Framework

How Much You Get to Keep Matters


During and Post‐liquidity:

Entrepreneurs ‐ getting out based on “gut”‐ casual interest in managing wealth ‐ the loftiest of capital building goals

Next Generation ‐ loftiest goals for liquidity

Who Will You Choose to Guide YouBefore, During and After this Event?


Why do‐it‐yourself or do nothing is most expensiveAbsence of mastery

A trusted advisor, friend, some one elseWhat you need to consider their skills, focus or motivations

We are uniquely positioned to exceed the premium result you expect & anticipate the contingencies or road blocks• High EQ/ IQ – both technical and empathy• Strategic focus • Simplifying technical guidance into a clear roadmap• Alignment of interests amongst family and advisors

What is Your Reason for Waiting?


You do not have to travel alone.

Experience the Feel of Exceeding Your Expectations

Here’s To Your Success

Privatus CI3O Services, LLC All Rights Reserved@201421

Robin Coady Smith1330 Avenue of the Americas, 23rd FlNew York, NY 10019Phone: 1‐646‐328‐1982Email: [email protected]

Carl Lloyd Sheeler, PhD, ASA, CBA, CVA2049 Century Park East, Suite 2525Los Angeles, CA 90067Phone: 1‐310‐499‐4842 CA

1‐646‐328‐1981 NYEmail: [email protected] or [email protected]

Web: www.prcio.comwww.thinkbrg.com

brg privatus ci3o business deck book

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