Name: Score:
88 Multiple choice questions
Term 1 of 88
Due Diligence items
Product development timelines, sales team performance reviews, advertising budgets
Employee satisfaction surveys, customer feedback forms, social media analytics
Corp doc's, 3 yr CPA stmt's, AR/AP reports, Financial projections, SWOT's, Sales/Marketing
reports, etc
Market trend analysis, competitor pricing strategies, brand recognition studies
Term 2 of 88
What is the time frame most private companies can increase their value and should begin their
value growth?
2-3 Years
3-5 Years
not more than 2 years
4-9 Years
Term 3 of 88
Disadvantages of Strategic buyer
Distraction, privacy, longer process, emotions, complex
Third Party, recapitalization, Orderly liquidation
Confidentiality, Layoffs and Culture shocks
Poor planning and execution
,Definition 4 of 88
How an outsider would view your business
identification
readiness
attractiveness
similarity
Term 5 of 88
Buyers Prefer prefer what Type of Sale
Stock - no step up, b/c cannot depreciate equip, must take all assets
Asset - Step up, B/c can re-depreciate equip, Can decide on Assets they want
Liability - step down, b/c increases value, can reject assets they want
Equity - no depreciation, b/c fixed value, must keep all assets
Term 6 of 88
What are some categories to evaluate and compare to other companies in the marketplace?
FMV is a price at which a hypothetical willing buyer would pay a hypothetical willing seller.
Prepare buyer list, review NDA, create blind exec summary, create CIM
Asset - Step up, B/c can re-depreciate equip, Can decide on Assets they want
Market growth
Equipment condition
Information systems
Products and sales
,Definition 7 of 88
Vision (compelling Vision)
Alignment THE PLAN (align resources to vision- what we will do and what we will NOT do)
Accountability PLAN EXECUTION (process issue and not usually people- ask why?)
Rhythm RESULT (everything else leads to rhythm or flow)
96 components of relentless execution
4 components of relentless execution
8 components of relentless execution
6 components of relentless execution
Definition 8 of 88
Vision
Alignment
Accountability
Rhythm
Advantages of ESOP
Sellers prefer what Type of Sale
Value Acceleration
Relentless Execution
, Definition 9 of 88
Complex and highly leveraged
Biggest disadvantages of financial buyers
Goal of value enhancement
Intergenerational Transfer Advantages
Range of value
Definition 10 of 88
Synergies (Competitor, Supplier, etc) - Pay Prem (Layoffs, Culture issues)
Most Common PE Transaction Types
Strategic Buyers are usually who
Goals and objectives are typically created or updated in which gate of the Value
Acceleration Methodology?
Disadvantages of 3rd Party Sale
Term 11 of 88
2 Business owner styles
1) Lifestyle
2) Value Creator
Adjusted Ebitda * Multiple
Starts with numbers and ends with numbers but encompasses more than that
Add backs + Net Operating Profit
88 Multiple choice questions
Term 1 of 88
Due Diligence items
Product development timelines, sales team performance reviews, advertising budgets
Employee satisfaction surveys, customer feedback forms, social media analytics
Corp doc's, 3 yr CPA stmt's, AR/AP reports, Financial projections, SWOT's, Sales/Marketing
reports, etc
Market trend analysis, competitor pricing strategies, brand recognition studies
Term 2 of 88
What is the time frame most private companies can increase their value and should begin their
value growth?
2-3 Years
3-5 Years
not more than 2 years
4-9 Years
Term 3 of 88
Disadvantages of Strategic buyer
Distraction, privacy, longer process, emotions, complex
Third Party, recapitalization, Orderly liquidation
Confidentiality, Layoffs and Culture shocks
Poor planning and execution
,Definition 4 of 88
How an outsider would view your business
identification
readiness
attractiveness
similarity
Term 5 of 88
Buyers Prefer prefer what Type of Sale
Stock - no step up, b/c cannot depreciate equip, must take all assets
Asset - Step up, B/c can re-depreciate equip, Can decide on Assets they want
Liability - step down, b/c increases value, can reject assets they want
Equity - no depreciation, b/c fixed value, must keep all assets
Term 6 of 88
What are some categories to evaluate and compare to other companies in the marketplace?
FMV is a price at which a hypothetical willing buyer would pay a hypothetical willing seller.
Prepare buyer list, review NDA, create blind exec summary, create CIM
Asset - Step up, B/c can re-depreciate equip, Can decide on Assets they want
Market growth
Equipment condition
Information systems
Products and sales
,Definition 7 of 88
Vision (compelling Vision)
Alignment THE PLAN (align resources to vision- what we will do and what we will NOT do)
Accountability PLAN EXECUTION (process issue and not usually people- ask why?)
Rhythm RESULT (everything else leads to rhythm or flow)
96 components of relentless execution
4 components of relentless execution
8 components of relentless execution
6 components of relentless execution
Definition 8 of 88
Vision
Alignment
Accountability
Rhythm
Advantages of ESOP
Sellers prefer what Type of Sale
Value Acceleration
Relentless Execution
, Definition 9 of 88
Complex and highly leveraged
Biggest disadvantages of financial buyers
Goal of value enhancement
Intergenerational Transfer Advantages
Range of value
Definition 10 of 88
Synergies (Competitor, Supplier, etc) - Pay Prem (Layoffs, Culture issues)
Most Common PE Transaction Types
Strategic Buyers are usually who
Goals and objectives are typically created or updated in which gate of the Value
Acceleration Methodology?
Disadvantages of 3rd Party Sale
Term 11 of 88
2 Business owner styles
1) Lifestyle
2) Value Creator
Adjusted Ebitda * Multiple
Starts with numbers and ends with numbers but encompasses more than that
Add backs + Net Operating Profit
