Do you know how to maximize the value of your business? Benchmark International’s useful guide will help you understand the steps that need to be taken prior to a sale to achieve your desired outcome. We are here to help you increase the value through extensive industry knowledge, sales experience and a unique approach that tailors our services to your business.

1. 1 CEO REPORT: MAXIMIZING THE VALUE OF YOUR COMPANY
BENCHMARK INTERNATIONAL - CEO REPORT
Maximizing the Value
of Your Company

2. 2 CEO REPORT: MAXIMIZING THE VALUE OF YOUR COMPANY
ABOUT THIS REPORT
This report was created by Benchmark International and is the second of a three part series.
To see other reports in this CEO series, please visit:
ABOUT BENCHMARK INTERNATIONAL
Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions
for growing and exiting their businesses. In 2015, Benchmark International transacted on over $1B in deal value across 50 industries worldwide. With
decades of global M&A experience, Benchmark International’s deal teams have assisted hundreds of owners to achieve their personal objectives and
ensure the continued growth of their businesses.
THEBENCHMARKVAULT.COM/CEO
BENCHMARKCORPORATE.COM

3. 3 CEO REPORT: MAXIMIZING THE VALUE OF YOUR COMPANY
MAXIMIZING THE VALUE OF YOUR COMPANY
Many owners are unaware of why they should maximize the value of their business before selling or the steps to take in order to do so. The best place
to start is creating a plan and understanding where your company can grow. If you have been contemplating geographic expansion or targeting new
customers, now is the time to act. Maximizing the value of your business before finding buyers may significantly improve your chances of completing a sale.
Many buyers seek businesses that strive to improve operations and financial results. Sellers may think the best option is to gain market feedback before
pursuing business development, but this may actually be more detrimental because it can give an unrealistic indication of the value of the company. It is
recommended that you estimate the value of your business at every inflection point in the market. This will also show you that the value of your business will
fluctuate with the economy, just like a house. Another useful tip is to wait until you engage with an M&A consultant before deciding on an exit or growth
strategy to guide you along the process.
Benchmark International follows the five simple steps to prepare your company for its maximum value.
1
Understanding Objectives
2
Internal Factors
5
Exit Options
4
Blue Sky
3
External
Factors

4. 4 CEO REPORT: MAXIMIZING THE VALUE OF YOUR COMPANY
UNDERSTANDING OBJECTIVES
To begin understanding your options, you should first consider your personal objectives. Is there a value you want to achieve? Are you seeking a particular
buyer, financial or strategic? Do you want to create a succession plan for your management team? Answering these questions will be a great start to
defining your objective. It is equally important to understand the objectives of other shareholders and how they may differ from your personal goals. Other
considerations include timing, the business’ position in the market, and corporate objectives. Have you considered a timeline of when you would like to
fully exit your company upon a sale? You may have decided to leave the first day following the sale, but it is not uncommon for business owners to change
their minds, in either direction, regarding when they will leave the business. You should also consider the status of your business as it sits today. Analyzing
your company’s value today may help you identify opportunities to improve your company’s position in market.
WHAT ARE YOUR PERSONAL OBJECTIVES?
What is it you want to achieve? A value? A particular type of buyer? A future
for your management team?
WHERE IS THE BUSINESS TODAY?
Where should it be positioned in order to command the best value?
DO SHAREHOLDERS HAVE DIFFERENT OBJECTIVES?
Differing sets of objectives can all be satisfied thoroughly.
WHAT ARE THE CORPORATE OBJECTIVES?
The best interests of your business might be of equal importance to your
personal aspirations.
WHAT DOES THE TIMING LOOK LIKE?
Over what time frame do you wish to exit?
A full exit on day 1 or a phased exit that influences your value?
WHAT ARE THE VALUE DRIVERS?
Are there distinquishing factors at play in your business, responsible for your
degree of success?
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5. 5 CEO REPORT: MAXIMIZING THE VALUE OF YOUR COMPANY
INTERNAL FACTORS
Two key internal factors include the people you are currently employing and the company’s financial position. Your employees should be a consideration
when discussing the option of selling your business. Especially if you depend on them to maintain company operations. The biggest question is whether they
would stay following a new sale under new owners. If staff members are not willing to stay, then there are gaps to be filled, which can seem unattractive
to potential buyers, especially if those positions are within the management team. Potential buyers are typically more attracted to businesses with a strong,
upper-level management team with the relevant industry experience needed to operate the business. Another key internal factor is the company’s financial
performance. Financial statements are heavily reviewed during the due diligence process of the sale. Your business may gain value if it has a surplus in
assets and its capital expenditure supports growth. Other internal factors that may impact the value of your business are the profit, management accounts,
incomes/losses, profitability, and adjustments.
PEOPLE SYSTEMS
CORPORATE
GOVERNANCE
HOUSE KEEPINGFINANCIALS
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6. 6 CEO REPORT: MAXIMIZING THE VALUE OF YOUR COMPANY
EXTERNAL FACTORS
External factors can be equally as important as internal factors when valuing your company. The market outlook and trends should be given careful
consideration and your business model should demonstrate an awareness of any impending changes. Proprietary services or products unique to your
business are key selling points that can counteract negative market trends. Competitor analysis should also be considered when valuing your business. The
analysis may reveal commonalities between your competitors, allowing you to adopt good practices and differentiate your own business accordingly. It
may also bring to light any barriers to entry that are crucial to new entrants in your industry.
MARKET OUTLOOK
AND TRENDS
COMPETITOR
ANALYSIS
BARRIERS
TO ENTRY
MARKET
SHARE
UNIQUE
SELLING POINTS
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7. 7 CEO REPORT: MAXIMIZING THE VALUE OF YOUR COMPANY
THE BLUE SKY
The blue sky step analyzes your company from the marketing plan to customers, products and advertising. A well thought-out sales and marketing plan may
demonstrate a stable model for continued growth, ultimately making your business more attractive to buyers and increasing your value. The marketing plan
should address securing new customers and creating new products to keep up with the competition in your industry. Advertising efforts extend into your
company’s website, promotional and sales literature and video testimonials. Combined, the three advertising efforts may boost new business opportunities
and brand awareness.
PROFITABILITY
OF CLIENTS
NEW
MARKETS
SALES &
MARKETING PLAN
EXPANDING
SECTORS
WEBSITE &
TESTIMONIALS
PROMOTIONAL &
SALES LITERATURE
RESOURCES
REQUIRED
IMAGE &
REPUTATION
NEW
CUSTOMERS
NEW
PRODUCTS
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8. 8 CEO REPORT: MAXIMIZING THE VALUE OF YOUR COMPANY
EXIT OPTIONS
When thinking about leaving your company, the toughest decision will be your exit strategy. You should be researching potential buyers through buyer
intelligence and reviewing M&A activities with your M&A consultant. The more buyers you engage with, the higher your company’s value may be. M&A
activities may give you a good indication of the value your company can achieve in the market.
RESEARCH
POTENTIAL
BUYERS
ANALYZE
M&A ACTIVITY
GO-TO-
MARKET
TARGET
STRATEGIC
BUYERS
ENGAGE
M&A GROUP
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9. 9 CEO REPORT: MAXIMIZING THE VALUE OF YOUR COMPANY
There are numerous steps that go into valuing your company and engaging
with an M&A consultant may greatly influence the result of your valuation.
We Are Ready
When You Are.
CALL BENCHMARK INTERNATIONAL TODAY: 813-898-2350