Investor & Exit Ready Checklist

Capital Raising, Acquisitions & Exit Conference

INSTRUCTIONS Rate your business/your clients business from 1 to 5 Add up total at end which will give you a rating out of possible 100 points MBE recommends a min rating of 75 prior to speaking to investors or buyers Checklist only useful if you/your client is honest with answers RATING SYSTEM 1 We are now aware of this but have done nothing about it 2 We have commenced working on this task 3 We are half way through this task 4 We are nearing completion of this task and have a completion date in place 5 This task is 100% complete TASK 1
BUDGET Do you have a budget to raise capital/exit of between 5% and 10% of funds raised/sale price? Do you have at least 30% available upfront? BUSINESS PLAN

RATING 1 to 5

Notes/Tasks

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Is your business plan written and up to date?

INFORMATION MEMORANDUM Do you have an Information Memorandum written, up to date and checked by a commercial lawyer? INSURANCE Is your business insured against loss of income, equipment, assets, IP, Public liability Are the key management insured against death, disability etc LEGALS Directors registered Shareholders registered / shares issued Shareholders agreement / Constitution Capital raising exemptions checked with lawyer Internal legal Due Diligence report completed CONTRACTS/DOCUMENTS Are they all in place, signed and up to date? Employment contracts Supplier contracts Distribution contracts Licensing / Franchising contracts Lease agreements Inter-company agreements and loans FINANCIALS Do you have up to last two years financials completed? (mark as 5 if your business has no financial history) PROJECTIONS Do you have your next 12 to 24 month financial projections completed? Were they prepared or reviewed by an experienced accountant?

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Are they realistic and stress tested? INTELLECTUAL PROPERTY

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Is your IP secured and held within the entity in which you are raising capital/selling? Trademarks (Words/Logos) / Patents Trade Secrecy Agreements BARRIERS TO ENTRY Do you have defensible barriers to entry backed up by strategy and data? VALUATION Do you have a valuation model in place? Has it been reviewed and stress tested by friendly investors and advisors? CORPORATE ADVISOR Do you have one? What role do they play for your company? Are they the right fit for your company? SYSTEMS & PROCEDURES Are all your internal procedures documented and systemized? Is systems and procedure manual written and up to date? (online) INVESTORS / BUYERS

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Do you have access to a sufficient number of potential investors/buyers?

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Can they invest/buy according to the method under which you are raising capital / selling? BOARD & MANAGEMENT Do you have the ideal board composition? Do they add value to the company? Can they introduce investors/buyers? Do you have the staff and management team to execute the business plan? If Exit, are key staff prepared to go with the sale? USE OF FUNDS Do you have a well thought out use of funds statement? Is Acquisition/s part of your strategy? (If Exit, give rating of 5) PATH TO EXIT Is there a clear path to exit for investors in a 3 to 5 year timeframe? Are the returns adequate? Is it realistic? (If Exit, give rating of 5) PRESENTATION Do you have a pitch presentation ready in powerpoint and printed form?

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Have you practiced it at least 10 times? RISKS Have you identified the following risks and have described in the IM how they will be mitigated? Debt Covenants
Stockmarket / Property market Interest rates / petrol / energy Supplier stability Bubble industry or sector State of general Australian economy

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Seasonality / Freak weather conditions Execution risk FOCUS

Are you 100% committed to and focused on this project from now through to exit? Are you 100% committed to the Exit?

Maximum Possible Rating is 100 YOUR RATING