Capitalize on the demographic driven succession wave that is fast approaching Learn acquisition best practices from business transition experts drawn from a variety of disciplines. The Succession Network will provide you with the breadth of information required to execute successful and highly lucrative acquisitions. Gain the knowledge and confidence to transition from employee to owner or from organic growth to accelerated acquisition driven growth. The Succession Network is comprised of six high caliber independent organizations, each with unique and complementary expertise, which have come together to provide a comprehensive resource for all your acquisition needs. Who needs to attend This seminar is designed for buyers seeking to acquire successful private BC based businesses with revenues in the $2M to $50M range – including: • Senior managers with the desire to purchase the company they currently work for • Owners of businesses contemplating the acquisition of competitors or vertical integration strategies • Third party acquirers and/or silent investors The demographic shift is upon us – over 40% of all BC business owners are looking to sell in the next 5 years! Exceptional companies that have not been ‘for sale’ at any time over in play… …are you ready to capitalize? How to Buy a Business • Overview of the acquisition process Whether you are planning a • Determining value and negotiating a price management buy-out, strategic • Establishing legal agreements to protect your interests • Using finance strategy to amplify your return while limiting your risk • Identifying and overcoming silent barriers acquisition, or purchasing a business as an investor…learn from acquisition specialists how to find target companies, negotiate the deal, avoid common pitfalls, minimize your risk and maximize your return. Peter Day & Associates Inc. March 11th, 2008 SFU - Surrey Campus, Surrey the past 20 to 30 years are now What topics will be presented • Understanding tax consequences when negotiating the deal March 10th, 2008 Hilton Metrotown, Burnaby Schedule seminar 1 Schedule seminar 2 Monday, March 10th Hilton – Metrotown, Waterford rooms 1 & 2 6083 McKay Avenue, Burnaby Tuesday, March 11th SFU – Surrey Campus, Room 3170 13450 – 102 Avenue, Surrey 7:30am to 8:00am Registration & continental breakfast 8:00am to 12 noon Program followed by questions & answers FVTN members receive $50 off. March 11th session only 7:30am to 8:00am Registration & continental breakfast 8:00am to 12 noon Program followed by questions & answers All seminar attendees receive a free 1-hour individual consultation with each of the six presenters. These free consultations must be booked within 30 days after attending the seminar. Seminar program Overview of the Business Acquisition Process Peter Day, CA, CBV Peter Day & Associates Inc. The business acquisition process is a lengthy and complicated process requiring the input and advice of a variety of skilled and experienced professionals. Peter will provide an overview of the acquisition process including planning, identifying acquisition opportunities, valuation, deal structure and terms, negotiations, due diligence, financing and closing. Peter Day is a Chartered Accountant and a Chartered Business Valuator. Peter has been advising buyers and sellers of businesses for over 20 years – 15 years in the corporate finance group of Deloitte & Touche, Vancouver and 5 years as President of Peter Day & Associates Inc. Valuation Hugh G. Livingstone, CGA, CBV Blair Mackay Mynett Valuations Inc. What is it worth? Buying at the right price will have a significant impact on the return you ultimately realize...but how do you determine what a company is truly worth? Hugh, a Chartered Business Valuator, will discuss the fundamentals of business valuation. He will cover topics such as an ‘earnings’ based approach, EBITDA, an ‘asset’ based approach, minority discounts, latent taxes and how to calculate goodwill. Hugh G. Livingstone is a Certified General Accountant and a Chartered Business Valuator. Hugh has valuation experience across a wide range of business sectors and has given expert witness testimony on valuation matters for the Supreme Court of British Columbia. Hugh has over 25 years of public practice experience focusing on owner-managed businesses. He has also given numerous presentations on valuation matters for professional and business associations. Tax planning for acquisitions Preventing critical errors when buying a business Acquisition finance strategy Deborah Graystone, BSc, TEP, CGA MacKay LLP Don Sihota, BComm, LLB Clark Wilson LLP Axel Christiansen, MBA, CFA Vancity Capital It is often said that the ‘Tax Man’, Canada Revenue Agency, has a vested interest in any business transaction. Purchasing a business is one time where knowing the tax issues ahead of time will give the purchaser an advantage in negotiating the best possible deal and minimizing the after-tax cost of the acquisition. The ability to structure the acquisition in a tax-efficient manner can provide benefits for years to come by maximizing future tax write-offs and minimizing taxes on an eventual sale. Buying a business involves complex legal issues, the importance of which is often not fully understood. In his presentation, Don will address many of these legal issues and explain them in a clear and understandable manner. He will discuss issues such as: • Letters of intent, deposits & standstill agreements How you finance an acquisition is often the single most important factor in determining the return on equity and wealth creation you ultimately realize. Creating the ideal capital structure typically requires the use of a variety of conventional and alternative financing tools. Axel will describe how you can use finance strategy to: • Asset purchase versus share purchase transactions • Reduce your equity contribution to as low as 10% of the total transaction value • The due diligence procedures purchasers must employ • Generate a rate of return on your equity in excess of 40% per annum • How to minimize risk through indemnities & holdbacks • Limit your personal exposure Don will share with you his extensive deal making knowledge gained over many years from acting for both sellers and buyers. This presentation will explain, through the use of case studies, how to finance an acquisition using less of your own equity while still minimizing your risk. Other topics including WACC, subordinated debt, using vendor financing to your advantage, and pitfalls to avoid will be covered. This presentation will highlight the tax planning aspects and opportunities related to the acquisition of a business from the purchaser’s perspective. The vendor’s tax concerns will also be addressed. With proper planning, very favourable tax results can often be achieved for both the vendor and the purchaser.. Deborah Graystone has advised business owners on taxation matters for over 20 years, focusing on tax planning for mergers, acquisitions and business succession. She is a frequent lecturer and author on taxation matters for the Certified General Accountants Association of British Columbia and the University of British Columbia. Don Sihota has over 20 years experience in corporate and commercial law, including business succession planning, acquisitions and sales of businesses, negotiation of commercial agreements and involvement with corporate mergers and reorganizations. Don has written numerous articles on corporate and commercial law and he is frequently quoted by the media on the subject of business succession planning. How to register To attend please register by one the following methods: • Calling 604-877-6565 between the hours of 9am & 5pm PST • Faxing the registration form to fax number 604-871-5409 • Mailing the registration form and payment to: The Succession Network, 530 - 815 West Hastings St., Vancouver, BC V6C 1B4 Early bird rate 140 $ Register early to save! Rate information • Outbid competing offers & close the deal Axel Christiansen has over 15 years experience in structuring and financing management buy-out and strategic acquisition transactions. Axel is a Chartered Financial Analyst charter holder and a founding member of Vancity Capital, having been with the firm since its inception in 1998. Ensuring your acquisition is a success: addressing the silent barriers Francine Z. Carlin, MA Business Harmonizer Group Just when you think all the technical details have been confirmed, the seller decides to terminate the transaction for no apparent reason. The decision by a seller to let go of his/her business is a complex decision and oftentimes a significant life event for the seller. In a buyer’s efforts to purchase an owner-operator business is it essential that the buyer have an awareness of the personal and interpersonal dynamics — the silent barriers — that have an influence on the seller’s decision-making process. During this working session participants will identify many of the ‘hot topics’ that influence sellers and understand and learn how to safely address these silent barriers before they undermine the acquisition process. Francine Z. Carlin’s practice focuses on the interpersonal dynamics that impact business decision-making. Of particular note is her work with entrepreneurs and business-owning families where she is able to effectively link emotional issues to the real world of business. Francine is consultant, facilitator, and organizational coach with over 25 years of executive experience in organizational communications, team and leadership development, conflict and change management and strategic business planning. I am a FVTN member Registrant information Name _________________________________________ Phone_ __________________ Company ________________________________________________________________ Address _________________________________________________________________ Postal code _________________ eMail _______________________________________ Payment information Cheque – Cheques should be made payable to The Succession Network Credit card R VISA Master Card American Express The cost is $200 per seminar inclusive of all taxes. The Early bird rate of $140 per seminar is available until March 3rd. Card #_ _________________________________________ Expiration date __________ Which date will you be attending? Authorized amount $_________ Name on card _________________________________ Monday, March 10th – Burnaby Tuesday, March 11th – Surrey Month Signature_ ______________________________ Year