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

Let us help you

Unlock your Value.

Thank You!