Page 14 - SEll Your Business Booklet

STEP 3. Documentation

What a buyer

needs to know

A professionally prepared Information Memorandum Contents of an IM
(IM) is a key document when selling your business • Executive summary
and will reduce the need for your involvement in • Background information
initial meetings with potential buyers. • Management organisation
and control
• Staff infrastructure
What is an IM? • Historical financial information
This document sets out all the relevant to the buyer’s decision, and comments
relevant information about your including anything that may • Financial performance and
business for a prospective buyer, affect the ongoing profitability of outlook
and it’s hard to sell a business the business. Your LINK broker • Opportunities and potential
without one. Your IM needs to will help you gather the right • SWOT analysis and business
be comprehensive, accurate information and will prepare your plan
and represent the business IM in consultation with your other • Detailed breakdown of
honestly. Consumer protection professional advisors. tangible/intangible assets
legislation requires business • Appraisal
owners to disclose all information
• Product/Service positioning
• Premises, facilities and lease
details
• Marketing materials
• Reasons for sale

orma
ti
18 18 Information Memorandum GRAN FONDO GROUPGRAN FONDO GROUP 1919
Inf
on M
um

emor
and
Management
M ana g emen t S
Stafftaff
om an e
r
s f
xperi
Shar e hol d er Gran Fondo Group benefits from an experienced d e
Shareholders s
enc
t
ond
G
r
an F
oup benefi
r
o G
and loyal staff team across three sites. Many y
e
an
Bruce WillisBruce Willis and l v e be o y al s en wi t aff t th the b am a us cr ine os s thr s f or q e e s ui i t e t s e s . M ome time
s
have been with the business for quite some time. .
ha
Bruce and an associated family trust is the 100% shareholder
Bruce and an associated family trust is the 100% shareholder
in the group and provides overall company direction and In addition to management here is a total staff headcount of In addition to management here is a total staff headcount of
in the group and provides overall company direction and
’
strategic development. Bruce s role is non-e x ecutive in nature , 3 37 as follows;7 as follows;
strategic development. Bruce’s role is non-executive in nature,
he has almost no day to day operational role in the business.
he has almost no day to day operational role in the business.
Post sale and after a suitable handover period Bruce intends to
ost sale and after a suitable handover period Bruce intends to
P
have a lifestyle change and exit the business.xit the business. POSITIONPOSITION HEADCOUNTHEADCOUNT
have a lifestyle change and e
GROUP GROUP
ManagementManagement Book k 11
Book keeper / Admineeper / Admin
The Gran Fondo Group benefits from a very capable opera--
The Gran Fondo Group benefits from a very capable opera
tional management team with many years of e
tional management team with many years of experience in all xperience in all GRAN FONDO GREENGRAN FONDO GREEN
facets of the service offering. The team in place is fully capa
facets of the service offering. The team in place is fully capa-- L Leading Handseading Hands 22
ble of running the business day to day and are comfortable ble of running the business day to day and are comfortable Production Production 1010
with accountability for the product/service process, customer service process, customer
with accountability for the product/
e
experience and ultimate profitability and ROI.xperience and ultimate profitability and ROI. GRAN FONDO BLUEUE
GRAN FONDO BL
It is envisaged that all management will stay with the
It is envisaged that all management will stay with the L Leading Handseading Hands 22
business post sale. The remuneration costs of the
business post sale . The remuneration costs of the Production Production 1010
management team have been included in the calculation GRAN FONDO 888
management team have been included in the calculation
GRAN FONDO 8
of the adjusted EBITD
of the adjusted EBITDA. A.
Group payroll including management & staff in the 2014/2015 Group payroll including management & staff in the 2014/2015 L Leading Handseading Hands 22
year was circa $ 2.11M.11M.
year was circa $ 2. Production Production 1010
lan
e
t & E
th thr
ons
i
a
quipmen
oc
P
W
e l
ti
RESPONSIBILITY
POSITION
HEADCOUNT
TENURE
POSITION HEADCOUNT TENURE RESPONSIBILITY With three locations Plant & Equipmentt
r
th
an F
e
al
o
GROUP G Gran Fondo has a wealth There is a significant amount of capital equipment, plant & There is a significant amount of capital equipment, plant &
ond
has a w
GROUP
Sales, Clients, Suppliers, Pricing.
of experience, with
8 Y
General Manager 1 1 8 Years ears Sales, Clients, Suppliers, Pricing. of e xper i en c e , wi th machinery to be sold with the business. machinery to be sold with the business.
General Manager
many staff being in the
Group Plant & Machinery Book V
Plant Manager
Plant Manager 1 1 25 Years Plant Operations, S taff . man y s t aff be in g in th e Group Plant & Machinery Book Value (2015)alue (2015)
25 Y
Plant Operations, Staff.
ears
$5
A
s f
or a l
es
us
in
TING
GREEN CO
GREEN COATING b business for a long time. e . $528,601 28,601
on
g tim
Plant & Machinery Depreciated Replacement Cost (11/2015)ost (11/2015)
5 years +
Factory Manager
Factory Manager 1 1 5 years + Plant & Machinery Depreciated R eplacement C
2,2
$
73,2
$2,273,240 40
UE CO
BL BLUE COATING
TING
A
Factory Manager
Factory Manager 1 1 5 Y 5 Years + A detailed plant & machinery list and recent valuation by a A detailed plant & machinery list and recent valuation by a
ears +
registered plant & machinery valuer is available for review..
registered plant & machinery valuer is available for review
GRAN FONDO 88
GRAN FONDO 8 8
10 years +
Factory Manager
Factory Manager 1 1 10 years +
12 SELL Y OUR BUSINESS, SMAR TER