Why You Should Hire Capital Strategies to Advise you on the Purchase or Sale of Your Business By Sheila Spangler 1. Financial analysis skills. a. I can read and interpret your business financial statements. b. Within just a few minutes, I will understand the basics of your financial situation. c. I know how to ask the right questions to get the right answers. i. Many times business owners have an innate sense of how their business is performing but are unable to fully explain it in a way that a buyer, banker, or investor needs to hear it. d. I can relate those answers into easily understood terms for other parties (buyer, banker, investor, employees, etc.). 2. Banking and finance expertise. a. I was a business lender and vice president in commercial banking for over 20 years b. I know what bankers need to understand about your business transaction or your business’s financial situation. c. I know that bankers don’t always say what they mean. i. Most bankers don’t like turning down your loan request. ii. They’ll tell you what you want to hear and then not call you back and hope that you’ll just “go away”. iii. I can hear what they don’t say and eliminate wasted time and hours of frustration waiting for a banker’s decision. d. I’ll do the analysis on your business before we go to the bank and ask for money. i. This way all problems can be identified and fixed before you go “hat-in-hand” to the banker. ii. It is never a good idea to go to the bank and say “how much can I borrow?” or “how much can I sell my business for?” iii. By identifying any problems and building on your strengths, I can tell you the likelihood of getting the funding you want for the situation you’re in. 3. Fearless Negotiator. a. There is generally a need to have professional advisors such as CPA’s or attorneys involved in business transactions. This is necessary for your protection in legal and tax matters. b. However, there are times when the same CPA’s and attorneys become out of control with their advice causing all sorts of havoc for you, your potential buyer, investor or banker. c. Because CPA’s and attorneys have advanced degrees, many times people will back off and not question them about things they don’t understand. d. For example, think about when you go to the doctor and he tells you that you must take a certain drug or that you have a horrible sounding disease. Sometimes, folks are so nervous about offending the “professional” that they are too intimidated to ask all the questions. And if they do ask the questions, the answers aren’t understood because the “professional” talks in his or her language and not in yours. e. When you are my client, I nip the occurrence of “professionalitis” in the bud. f. Remember: all professionals are people just like you and me. They get up in the morning, brush their teeth and put their pants on. They really don’t have a white robe and angel wings. g. I am not shy about questioning what needs to be questioned to protect your interests. h. I do this so you don’t have to. You want and need to remain in a neutral position not only to preserve your relationship with your advisors but to ease your stress level. 4. Communication Skills. a. I understand the importance of building rapport in order to facilitate any negotiation. b. I am a Neuro-Linguistics Practitioner. This means that I have intensely studied the meaning of body language and words in human interactions. i. Most communication is non-verbal meaning that what isn’t said carries more weight than the words used. ii. For example, have you ever had someone make a cutting remark to you and then say “just kidding”? Chances are very good that they are not kidding. c. I listen carefully to words, how they’re used and pay attention to the non-verbal signals to determine if there are still issues to be uncovered and dealt with. d. What does this mean to you? i. In a negotiation with a buyer, banker, investor, vendor, or employee, I can advise you on issues that still may be lurking under the surface that need to be handled. ii. True communication is judged by the response you get from the other party. In other words, if someone doesn’t understand what you said, its your job to make sure that they do…..for the sake of your business. 5. Identify Strengths and Mitigate Weaknesses of your Company. a. I can spot financial, management or marketing weaknesses in your company and can provide suggestions to mitigate them. i. If your profits are down and you’re blaming the “economy”, I’ll be able to tell you after a thorough analysis of your business if that truly is the case. b. I can point out a company’s strengths and what that means to other interested parties should that be buyers, bankers, investors, shareholders, etc. i. Sometimes owners take things for granted about their business. Things that may seem “old hat” to you, can be seen as a huge benefit to a new owner. ii. I know how to present your business in a light that highlights those hidden opportunities and undiscovered wealth. iii. This means a better value to you when you sell. iv. More value equals more money in your pocket. 6. Profits drive the value of your business. a. Your business must make money in order to be of interest to a savvy buyer, investor or banker. b. To make a profit, your business needs continually growing or steady sales greater than expenses. c. In many cases, the biggest hole in an owner’s bucket of earnings is caused by not knowing the answers to the following questions and implementing the action steps if you do know the answers: i. Why do people choose your business over your competitors? ii. What business are you really in? (this one may surprise you) iii. Who is your target market? iv. What is the average lifetime value of your ideal customer? v. How much should you spend to get a new customer? vi. What kind of marketing and advertising should you be doing? vii. How can you determine what marketing is working and what isn’t? d. I can teach you how to find the answers to those questions. e. I can build the means to attract sales and profits through good times and bad. f. I show you how to build the value of your business so you can sell your company for the price you want when you are ready. 7. Integrity – a. There is no hidden agenda with me. i. I will only take you on as a client if your business is saleable, or if it can become saleable. b. I’ll tell you the reality of your situation. i. I’ll let you know in clear language the current state of your business. ii. If your business needs a “tune-up” before you can sell at the price you want, I’ll let you know right away. iii. I won’t tell you what you want to hear just to get your business. iv. I’ll do the right thing even if it means I don’t get your business. v. Having a good reputation is my greatest asset. c. I am always open to your feedback good or bad – just be straight with me. d. I’d rather hear your opinion from you than from a third party. e. If I make a mistake, I’ll tell you and fix it. 8. Just Do It a. When you hire me to do a job, I do it . b. I make sure that there are no unanswered questions or concerns. c. When you are my client, I am available to you. d. I won’t take your money and disappear. e. I’ll give you periodic updates and recommendations. 9. Attention to detail – a. I’ll explain things in a clear easy to understand manner. i. For example, I interpret complex financial or legal documents and put it in layman’s terms so it is easily understood. ii. I’ll point out the issues that could occur if you do or don’t so something. b. I have no fear of asking questions to make sure difficult situations are understood. i. When your CPA or attorney gives you advice and you’re not sure what they said and even less certain about what they mean, I get to the bottom of it and explain it so it is clear. c. I know that the “devil is in the details”. i. And when you are dealing with financial matters, this is rule one. 10. Leadership. a. Everyone has an agenda and generally its not about you. b. When you hire me, my agenda is you and I keep everyone on track (CPA, attorney, banker, insurance agent, etc). c. I keep them moving in the same direction to accomplish the goal (exit strategy, sale, purchase, recapitalization, etc.) d. I coach you through the process of buying, selling, financing or building the value of your company so you can get what you want.

business acquisition, sale, merger, recapitalization, expansion or exit planning, financing and analysis, marketing and profit improvement.

Idaho

Certified Business Intermediary (CBI), real estate broker, Certified Commercial Investment Member Candidate (CCIM), Graduate of Pacific Coast Banking School at the University of Washington, neurolinguistics practitioner.

Our Ten Fundamentals 1. Trust is the key to success. When a business is changing hands, everything is on the table: personal data, financial information, you name it. That’s why we offer absolute confidentiality and the highest ethics. Our clients demand it and so do we. 2. We are selective about our clients. We only accept you as a client if we are confident we can accomplish the goal you wish to fulfill. Plus, we list only accept a small number of clients at a time. This translates into closer relationships - and better results - for clients. 3. We are responsive. It sounds so simple. Some of our competitors take on a client and then seem to disappear. We return your call and maintain an open line of communication with you. 4. We set realistic expectations. We provide clients with a current snapshot of the marketplace and help you determine a reasonable “Buy or sell” price. We take you through the process one step at a time setting your expectations and preparing you for what is coming next. Buying or Selling a business can be a long and tedious process. We've been there and can guide you along the way. 5. Success is in the details. We will not present your business before you’re prepared. That means creating a clear picture of finance, operations and all the details that make you or your company unique. What's more, we create a marketing package with a detailing of the history, company financial analysis, photos (if you wish) and more. A favorable and exciting presentation of your business helps set the stage for your sale, or acquisition. 6. Selling and buying your business is our day job. Aggressive. Driven. Passionate. That's how we feel about our clients and their businesses. We spend time analyzing your company's strengths in the marketplace and strategizing the best ways to market it, finance it, or acquire it. 7. Flexibility is the answer. We believe that being flexible and moving quickly is important to maximizing the return you receive on your sale. If the current marketing strategy doesn’t work, we move to another. We represent you with a professional yet enthusiastic attitude. 8. We show you the money. Or at least, the money options. We have extensive expertise in financing options to help buyers transact the purchase. Additionally, we will bring in tax advisors to assist you in understanding the tax strategies and how to help you keep the most money from the sale. 9. Together everyone accomplishes more. We have a team of advisors who specialize in business and real estate transactions. These advisors range from lawyers and accountants to bankers and consultants, all of whom are experienced and knowledgeable in their field of expertise. 10. You are the reason we’re here. We believe that business owners are “Heroes” of the economy and deserve the respect and service that you provide to others. We know that owning a business is a 24 hour per day, 7 day per week undertaking. We understand where you're coming from and we want to help you get where you’re going.