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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

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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%

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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

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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

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Mature Markets? RETAIL –Modcloth 17,191% - $16m

SECURITY – Lifelock – 11,474% - $131m

GOVT SERVICES – Luke – 16,637% - $37m

COMP H/WARE – Maxlinear – 8784% - $51m

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TPP – Positioning StatementAward Winning Products

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TPP – Positioning Statement

#5

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TPP – Positioning Statement

Legacy Products Don’t Dominate

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TPP – Positioning Statement

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TPP – Positioning Statement

#6

DEV SALES Marketing OPS

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TPP – Positioning Statement

EBIT > $2m

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TPP – Positioning Statement

The bigger you are the bigger PE

+

GROWTH = MAGIC

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TPP – Positioning Statement

Key Customers < 5% of Sales

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TPP – Positioning Statement

A killer flaw – buyer beware

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TPP – Positioning Statement

Top Ten Managers are World Class.

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TPP – Positioning StatementAll Senior Managers Are

Dispensable

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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

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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.

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TPP – Positioning Statement

Accounts Audited

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TPP – Positioning StatementStaff Moral & Engagement

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TPP – Positioning Statement

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TPP – Positioning StatementLegal Contracts & Filings

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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/