What is Grooming and why should you care? In Part 1 of this Four Part Series The Rudder Group explains that grooming your business will result in a higher valuation and a quicker process when you sell your business.

1. GROOMING FOR EXIT
PART 1
WHAT IS GROOMING?
Mike Rogers
Managing Partner
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. THE GROOMING PROCESS
• Primary objective: help build a
business capable of achieving a
chosen exit route within a preferred
timescale on the best available terms
• For private SMB technology
companies: shaping business to look
like one a purchaser will pay a
premium price to acquire
The Rudder Group
Growth Strategies & Mentor Capital

4. SO WHAT IS GROOMING?
• Implement positive actions to
accelerate revenue growth and
increase profits
• Identify characteristics that might
thwart or reduce the value of the
future sale of the business
• Know the steps that a potential
acquirer would take post acquisition
to know your company’s value
By grooming the business, the sale
should be achieved quicker and at a
higher valuation.
The Rudder Group
Growth Strategies & Mentor Capital

5. 99% OF PRIVATE TECHNOLOGY COMPANIES ARE ACQUIRED
• Design the company to be
acquired from the start
• Build something that fills a need
for one of the big tech
companies for the least amount
of money
• Smaller means nimble and fast
• Making it to an IPO is a remote
probability
The Rudder Group
Growth Strategies & Mentor Capital

6. CONTINUOUSLY GROOM YOUR BUSINESS
IF YOU’RE NOT CONSTANTLY "GROOMING” THE BUSINESS TO
BE SOLD, THEN YOU HAVE ALREADY SOLD IT… TO YOURSELF!
• Drive business direction
• Lock strategy into place
• Ensure implementation by
incentivizing management
• Stay on track throughout
grooming timescale
The Rudder Group
Growth Strategies & Mentor Capital

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

8. 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