We at Exit Planning LLC have expertise in helping owners find and hire a CEO to lead the company. We meet with owners to understand the company, including its strengths and weaknesses. We then tailor-make a Job Description, create an Ad based on the Job Description, post the Ad and receive resumes. We select the top resumes for a 1st interview and choose the top three for a second interview with the owners. Contact us to help you find your own professional management team!
How To Hire A Ceo / Professional Management Team to Enhance Selling A Business
1. HOW TO HIRE A CEO / PROFESSIONAL
MANAGEMENT TEAM TO ENHANCE SELLING A
BUSINESS
Joe Rodwell
ExitPlanning LLC
651 439-2375
www.ExitPlanningMN.com
www.LinkedIn.com/in/JoeRodwell
2. Entrepreneurs
Highly disciplined
Hard working
Willing to take risks
Driven (sometimes to a fault)
3. “If you want your business to become more valuable, you
must become less valuable!”
This is particularly challenging for entrepreneurs.
4. Value Drivers
Focus on before-tax earnings that reflect future income growth
Develop operating systems that sustain before-tax earnings
Document sustainability of earnings
Improve company performance measured by industry metrics
Update facilities, equipment, and systems to state-of-the-art
5. Value Drivers (continued)
Pay down debt, manage inventories – recognize obsolete items
Solidify and diversify customer base
Implement strategies to grow the company
Build a solid management team – incent team to perform
6. Value Drivers (continued)
Most Critical for 3rd Party Buyers:
Pre-tax earnings – EBITDA
Quality of existing management team, including – “will they remain?”
7. Core Competencies of a Successful Entrepreneur
Leadership
Operations
Marketing/Sales
Financial Management & Administration
8. Difference Between Entrepreneurial & Professional
Management:
Entrepreneurial Management - Company in which only
owners/founders hold significant management positions.
Professional Management - Company in which one or more non-
owners hold significant management positions -- usually the non-
owner manager has greater experience and/or training with meaningful
methodologies in one or more of these areas:
Operations
Marketing/Sales
Financial Management & Administration
9. Benefits of Professional Management:
Brings new disciplines and methodologies into the business
Relieves stressed owners
Mentors owner’s children
Can create considerable additional value
Facilitates multiple exit planning strategies
10. How Can a Business Owner Find Professional Management
Talent?
Own professional network
Own direct advertising
However, this is not in the owner’s normal area of expertise.
11. How Can a Business Owner Find Professional Management
Talent?
Hire an Executive Search Firm (they generally represent the CEO), or
Select a Firm with Business Ownership Experience
12. Advantages of a Firm with Business Ownership Experience
Complete Understanding
1. Leadership
3. Operations
5. Marketing/Sales
7. Financial Management & Administration
We represent you, the business owner, not the CEO!
13. Advantages of a Firm with Business Ownership Experience
(continued)
Ask the right questions – and listen
SWOT Analysis
Job Description
Advertisement
Candidate Questions
14. Selection Process
Create ad and gather resumes
Interview top 8
Select top 3 for 2nd interviews
Have top 3 complete Personality Profile – create own Profile Identity
Perform background/credit checks
Select top candidate – check references
15. Compensation Package
Competitive Salary
Bonus for EBITDA increases
Phantom Equity Plan – with non-compete
16. Post-Hire Follow Up
Introduction to the Company
Announcement to the Industry
Board of Advisors Meetings
17. Board of Advisors Meetings
Purpose - Accountability
Agenda for first 6 Meetings with new CEO performing these tasks:
5.Completion of SWOT Analysis
6.Reports on “due diligence” on the company
7.Gives Board detailed & unfiltered state of the company report
8.Presents proposed Strategic Plan for review & consideration
9.Presents next year financial projections and budget
10.New CEO creates Agendas at and after this point.
20. Summary
Entrepreneurs
Value Drivers – Two critical
1. EBITDA
2. Management Team
Advantages of Firm with Business Ownership Experience
Board of Advisors Meetings