2

FIRM OVERVIEW

• Founded in 2004

• Lower middle market

• Headquartered in Denver, CO

• Core team of 15

• 150+ years of combined M&A experience

• Known for extraordinary results

• Software/Tech

• Healthcare/Bioscience

• Energy

• Manufacturing/Dist.

• Consumer Pkg Goods

• Heavy Assets

SERVICES

Sell-side/ Capi-tal; 64%

Buy-side; 21%

Strategic

Advi-sory; 14%

BACKGROUND VERTICALS SERVICES

Financial Designs Ltd 3

The Market Today

Debt Markets

• Cheap

• Loose

Private Equity

• 1.3T committed capital

• 2.6T assuming 50% leverage

Strategic Acquirors

• In excess of 1T on balance sheets

Private Equity is Paying More Than Strategics

• For the good companies

Dave Johnson

Financial Designs Ltd 4

Top Things That Contribute to Enterprise Value

Build a solid, professional management team

• Value should be in the management team, not in the CEO/Owner

Create consistent, growing earnings

• No EKGs

Clear vision of market, routes to market, and problem-solving offerings

• “We know where we are going; if you want to join us, you’ll have to pay…”

Run a full auction process

• A competitive process

Lloyd Gottman

Worst Things to do Before an Exit

• Ignoring your advisors (wealth, tax, IB, management consulting)

• Do work with a knowledgeable tax advisor; it will save you A LOT of money

• Wealth strategies are key; think portfolio diversification

• Get an outside view of your business; one from the perspective of the buyer

• Paying attention to cocktail chatter about valuations

• Do understand the value drivers in the market – your specific market

• Do understand how they apply specifically to your firm

• Making wholesale changes to chase a higher valuation

• Do what you do very well

• Drive consistency, professionalism, incremental growth

• Ignoring preparation

• Do Initial due diligence review, including quality of earnings

• Do find the IB that works for you

Financial Designs Ltd 5Lauren O’Connell