What are the elements of a CBR?
| Confidentiality Notice | Market Demographics |
| Purpose & Disclaimers | Vendors |
| Executive Summary | Customers |
| Company Strengths | Competition |
| Company History | Growth Opportunities |
| Marketing Strategies | Reason For Sale |
| Processes | Price & Terms |
| Personnel | Business Financials |
| Facilities | Pro Forma Financials |
| Industry Summary | Appendix + Pictures |
What is the content of a CBR Executive Summary?
Components Include:
Name Location Hours of Operation
Reason for Sale Ownership Financial Snapshot
#Employees Brief Summary
The Brief Summary may address
- Longevity of Company in the Market Area
- Products/Services the Company provides
- Some unique aspects of the Company
- Seller’s Motivation and Objective
Company History?
Background of the Owner(s)
The Company’s Founding and Founder’s Vision The Company Evolution
Some of the Growth Milestones (e.g. #employees, Sales $ and / or Units, # Office Locations
Current Position of the Company
Company Strengths?
| • | Longevity |
| • | Niche / Unique Markets |
| • | Level of Brand Recognition |
| • | Proprietary Products, Services or IP |
| • | Unique Contracts or Certifications |
| • | Internal Procedures and Management Structure |
| • | Growth Trends |
MARKETING STRATEGIES?
| • | Discuss how the Company generates Sales |
| • | Advertising |
| • | Marketing |
| • | Sales Staff |
| • | Referrals |
| • | Go into Detail on each source (if relevant). |
| • | Discuss % of Revenue as a factor of each. |
| • | Are there unexplored opportunities? Can they be quantified? |
Daily Internal Operations?
- Product and Service Pricing
- Processing of Sales Leads
- Manufacturing of Products (if applicable)
- Shipping/Receiving Products Raw Materials / Inventory
- Compliance Procedures
- Entry of Data and Bookkeeping
Personnel Information?
| • | Discuss Jobs, Individuals and Compensation, confidentiality at early stage is important! |
| • | Who Manages What? |
| • | How are they compensated? |
| • | What is the experience/education requirements? |
| • | What Benefits are provided? |
| • | Create and Organization Chart. |
| • | Identify Key Positions including Owners. |
Facilities?
| • | Location and Key Points about each location |
| • | Size and # of offices and work spaces |
| • | Percentage utilization of Space |
| • | Terms of Lease Agreement(s) Note: If Seller owns real |
estate then terms and a lease must be prepared.
Customers?
| • | Who are the Customers (demographics)? |
| • | Is there a concentration of revenue with a few customers? |
| • | Are the customers repeat or new? Statistics if available. |
| • | How relationship driven is the revenue? |
| • | Are the customers being referred from someone? |
| • | What are customers buying? |
| • | Is there an overall breakdown / analysis as to type or category of sales revenue generated? |
Growth Opportunities?
| • | Buyers Pay for the History, but they are Buying the Future Performance! |
| • | Help a Buyer Visualize the Opportunities: |
| • | New markets to go after, marketing strategies, unrealized current opportunities |
| • | Highlight any relevant demographic, economic or industry changes that might help the business. |
| • | What would the current Seller do with more time and money? |
Financial History
| • | Three to Five Years of Recast Statements |
| • | Detail the Reasons for add backs or adjustments. |
| • | Make sure the Buyer understands these adjustments |
| • | AVOID CONFUSION BY THE BUYER. |
Appendix
| • | Additional Photographs and Charts |
| • | Equipment List |
| • | Marketing Materials |
| • | Industry Trends and Research |
| • | Letters of Praise from Customers |
| • | Press Clippings |
| • | Awards & Commendations |
| • | Licensing Requirements |
| • | Additional germane literature (e.g. Franchise Documents) |
Purpose of the CBR
| • | Make it look Professional. |
| • | Tell a Compelling Story. |
| • | Give the Buyer the Information they want. |
| • | Set expectations on price and terms |
| • | Address any Potential Land Mines Control the Dialogue, if Possible! |
Important “Donts’”
| • | Don’t go to market with missing details |
| • | Don’t over exaggerate or make false statements |
| • | Don’t include proprietary or sensitive information |
| • | Trade Secrets |
| • | Customer Names |
| • | Key Employee Names |
| • | Unique Market Strategies |
| • | Unique Lead Generating Strategies |
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