What specific steps to take when grooming your business to ensure a successful exit.

1. GROOMING FOR EXIT
PART 3
STAGE 2: WHAT TO DO
The Rudder Group
Growth Strategies & Mentor Capital

2. GROOMING FOR EXIT
This presentation is designed to help shareholders add
value to business through a structured grooming process,
gauge the right time to consider an exit, identify most
appropriate exit route, and ensure they achieve best deal
for themselves, their staff, and company itself.
The Rudder Group
Growth Strategies & Mentor Capital

3. THREE COMMON STAGES OF THE GROOMING PROCESS
Now • Complete an initial business
diagnostic
What • Agree on the ultimate objectives
How • Implement plan to make things
happen
The Rudder Group
Growth Strategies & Mentor Capital

4. STAGE 2: WHAT TO DO?
ESSENTIALLY, THE BUSINESS WILL CREATE A LIST OF WHAT IT
BELIEVES TO BE ACHIEVABLE TARGETS THAT BECOMES THE
GROOMING STRATEGY OF THE BUSINESS PRIOR TO EXIT.
The Rudder Group
Growth Strategies & Mentor Capital

5. STAGE 2: FOCUS ON VALUE DRIVERS
• Clear upward trend in revenues and profits
• Tightly controlled business and cost
reduction implementation
• Win a wide range of “attractive” customers
• Product or service is marketable going
forward
• Pipeline of innovative new offerings
• Build the brand image
• Management ready to face new challenges
with new owners
• Company’s documents and finances in order
The Rudder Group
Growth Strategies & Mentor Capital

6. STAGE 2: COMMON ISSUES TO ADDRESS WHEN GROOMING
Common Issues Actions to Mitigate
Lack of Vision/Direction  Establish strong leadership team
Management not pulling
together  Develop clear plan of action
Lots of good ideas; no one
following through  Team held accountable for
delivering objectives
Revenues growing with no
bottom line benefit  Optimize costs to support
growth objectives
Specialized skills needed without
adding full time resource costs  Identify consulting partners to
provide specific short term skills
Sales message is unclear (Rolls
Royce for a Ford Focus price)  Validate price point for known
(and perceived) market value
The Rudder Group
Growth Strategies & Mentor Capital

7. STAGE 2: FUTURE PROSPECTS OF THE BUSINESS
MUST BE ABLE TO SELL “BLUE SKY” TO NEW OWNERS
• Identify immediate and medium term
prospects and sell them as benefits
• Growth in products or services
• Exploiting a new product range
• New geographical markets
• New supporting legislation
Important to realize upside in some of
these areas by exit to substantiate claims
of growth
The Rudder Group
Growth Strategies & Mentor Capital

8. THE GROOMING FOR EXIT SERIES
• Part 1: What is Grooming
• Part 2 When to Begin
• Part 3: What to Do
• Part 4: Implementation
The Rudder Group
Growth Strategies & Mentor Capital

9. GROWTH STRATEGIES & MENTOR CAPITAL
THE RUDDER GROUP ACCELERATES OUR CLIENTS:
• Time To Market
• Time To Revenue
• Time To Positive Cash Flow
• Time To Exit
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www.theruddergroup.com The Rudder Group
Growth Strategies & Mentor Capital