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If you have a business idea or are a start-up and are interested in how you might be one day able to exit, then this FuseBox Session could be for you. At this event we will be hearing from people who have been there and done it. They will be sharing their stories and experiences, offering valuable insight and advice. We will be discussing 3 models of exiting a business: Merging/Selling Alex Cowell, MD, MBA Brighton MBA is a leading independent agency, with a client roster that includes Lovefilm, Avios, Everest, Guide Dogs and Sage by Heston Blumenthal. Having successfully led the acquisition by MBA of Cubeworks, the digital agency Alex founded in 2002, he joined the board as CTO and oversees global technology strategy for the group, whilst continuing his role as MD in the Brighton office. IPO Jonathan Satchell, Chief Executive, Learning Technologies Group PLC LTG is the only AIM listed company focussed on consolidating the fast growing but fragmented learning technologies sector. After 16 years of growing private e-learning companies, Jonathan is now in a position am excited by the opportunity to create a substantial global learning technologies agency through organic growth and strategic acquisitions. What are the FuseBox Sessions? The Fusebox Sessions are fortnightly events held by Wired Sussex at our FuseBox home in Brighton and are part of our FuseBox24 start-up programme. The sessions are based around the general theme of ‘ideas you can use’. We think that they have a lot to offer people outside the programme too, so we have made the sessions open and free of charge to Wired Sussex member companies and their employees. Each session consists of a talk with Q & A followed by the chance to network. These events are supported by the EU’s European Regional Development fund through the INTERREG IVC programme ReCreate
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S E L L I N G M Y D I G I TA L A G E N C Y: T H E J O U R N E YA L E X C O W E L L
T H E B E G I N N I N G O F T H E J O U R N E Y
Degree in Oceanography with Marine Biology, University of Southampton
Worked for dot com boom agency 2000-02
Moved to Brighton & founded Cubeworks 2002
T H E N E X T C H A P T E R
Sold Cubeworks to MBA in June 2013
In middle of ‘earn out’ with MBA until January 2016
Founded a new business - Sponsorworks, global SaaS sponsorship management platform
LONDON - MIAMI - BRIGHTON
T H I N G S I ’ L L C O V E R ( B R I E F LY )
1. What’s your strategy?
2. Planning for sale
3. The sale process
4. Merging
5. My top tips
1 . W H AT ’ S Y O U R S T R AT E G Y ?
– T E D T H O M A S M A N A G I N G PA R T N E R , S U N E X I T A D V I S O R S
“It’s almost like the military: before you go in, you want to know how you're going to get out.”
W H AT R O U T E W I L L Y O U TA K E ?
Trade sale
Succession plan
Lifestyle business
Transition e.g. services to product
IPO
2 . P L A N N I N G F O R S A L E
– O N E O F M Y A D V I S O R S
“You only sell your business once.”
Q U E S T I O N S T O A S K Y O U R S E L F
1. Who might buy your business?
2. What products & services would add value to their business?
3. What size business would suit these buyers?
4. What do you need to change or add to your offering?
O N A P E R S O N A L L E V E L
★ If you are critical to the business, can you extricate yourself in advance? [No = earn out (probably) / Yes = you’re free!]
★What are you going to do next?
K E Y FA C T O R S T O M A X I M I S E VA L U E
1. Profitability
2. Maintaining competitive edge
3. Resilience
4. Scalability & growth potential
5. Culture
6. Brand equity (esp. if brand name will remain)
– J A C K G A R S O N !
A U T H O R , H O W T O B U I L D A B U S I N E S S & S E L L I T F O R M I L L I O N S
“If you've got all this, people will be banging down the door to buy your company.”
G E T A L L T H I S T I D Y ( N O W ! )
Detailed forecasts & quick access to business data
Contracts for all client projects
Staff contracts up to date
Contractors - be careful of NI liability
Operations & staff manuals - get it all down
Office lease - be aware of potential costs, break clauses etc.
Office environment - spick & span
Expenses - no messy personal expenses
3 . T H E S A L E P R O C E S S
A D V I S O R S Y O U ’ L L N E E D
1. Deal broker - critical for a trade sale, less so otherwise
2. Accountant / Tax advisor - may be same person or two people
3. Specialist lawyer - in digital & M&A
D O I N G T H E D E A L AT T H E B E S T T I M E
When is the right time in the market to sell?
★Find & stay in touch with an industry M&A broker. Get to know one a few years before you plan to sell.
What is the minimum deal for shareholders & when could you achieve this?
★You must be prepared to walk away if you don’t get this.
T H E A C T U A L P R O C E S S
Your #1 aim: get an offer (ideally more than one to create competition)
1. Prepare short sales prospectus
2. Send it to target buyers & arrange meetings
3. Present really tight story to buyers
4. Get offers
B U T D O N O T F O R G E T…
★The deal might not happen…
★…so don’t ever take your eye off your business - it can take 6-12 months, a long exhausting time
T H E N E G O T I AT I O N
Broker is key in initial stages
Might want a second advisor to complement the broker for any sticking points
Question the buyer as much as they question you. (Get business plan & forecasts. Ask around in the industry to see what they are really like.)
After heads of terms, you need a great lawyer. Still a lot to negotiate.
4 . M E R G I N G
Q U I C K T I P S O N M E R G I N G
★Remember during any tough negotiation you might have to work with these people
★Ensure deliver unified message across board - internal & external
★ It’s all about relationships - avoid any ‘them’ & ‘us’ - throw some parties!
★Use social technology to unite multiple locations - we just replaced Yammer with Slack (it’s brilliant)
I N S U M M A R Y
M Y T O P T I P S
1. Be clear on your strategy
2. Start preparing your business today
3. Be clear on what you want
4. Rally trusted advisors around you
5. Enjoy the ride! It’s an exhilarating experience.
T H A N K S
[email protected]@alexcowell
Feel free to send me any questions.
LONDON - MIAMI - BRIGHTON
