Chris Frederiksen, CEO & Chairman 2020 Group USA

1. When You are Looking to Sell Your Practice or Buy a Practice, What you Should Know About Valuations, Financing and Payout Options. Chris Frederiksen, CEO & Chairman 2020 Group USA

2. 3 The most frequent questions I get are: • What’s the Multiple? • What’s the Multiple? • What’s the Multiple?

3. PCPS Survey • Sole Practitioner • 65% are over 55

4. PCPS Survey • Multi-Partner Firms • 63% expect a partner exit within 5 years

5. The Multiple is not the cause of a practice’s value – it’s the effect of the 15 C’s C CcCcCCcCcCCcCc

6. The 15 C’s • Client Retention • Culture of the Firms • Chemistry of the People

7. The 15 C’s • Care standards for Clients • Comparable Relationship • Co-dependency with Clients

8. The 15 C’s • Capacity to serve the Clients • Charging, Billing and collecting of fees • Close enough office location

9. The 15 C’s • Cost Savings • Cash at Closing • Contingency Payout

10. The 15 C’s • Compensation for services rendered • Cutting back • Communicating the deal to Clients

11. 10 Key Considerations of Valuation • Location • Size • Types of Practice • Dependency • Staff Announcing our 2013 Seminar Program– Register Today at www.2020groupUSA.com

12. 10 Key Considerations of Valuation Recurring Revenue Billing Rates and Realization Concentration of Fees Age of Clients Technology Announcing our 2013 Seminar Program– Register Today at www.2020groupUSA.com

13. 21 Key Deal Points • Price Determination • Cash Down payment • Payout Period • Acceleration • Contingency • Collars • Tax Treatment

14. 21 Key Deal Points • Financing • People and Benefits • Use of Name • Advising Clients • Fees • Deficient Work (Fix-it) • Uncompleted Work (Catch-up)

15. 21 Key Deal Points • Consultancy • “Perks” • Tail Insurance • Non-Compete • Disputes • Death • Divorce

16. So what’s theREAL deal on Multiples? • Major City • Suburbs • Rural

17. Final Piece of Advice • Do NOT sign a lease for office space!