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Quote Of the Month:
"The Chinese use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger - but recognize the opportunity."
-- President Richard M. Nixon.
Investment
Hindsight:
"October: This is one of the particularly dangerous months to invest in stocks. Other dangerous months are July, January, September, April, November, May, March, June, December, August and February."
-- Mark Twain.
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Welcome
to the Leveraged Capital Newsletter.
Our goal is to provide you with timely and informative articles about growth
and strategy issues effecting entrepreneurs and small to medium sized companies.
Each month Leveraged Capital will deal with issues affecting your
business. You will be able to read topics ranging
from finance, human resources, buying companies, selling your company, and
technology. In coming months you
will read profiles about other entrepreneurs and current decision makers.
We will keep timely content levels high, advertising content low, and
welcome your feedback.
Are you interested in contributing articles?
Or, do you have an interesting and unique story to tell about your
company? We would like to interview you.
Please contact us by Email at: editor@GrahamFinancial.com
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Selling Your Company. Part Four - The Art Of The Deal.
Selling your business is perhaps the single largest decision that you
will be faced with in your business life. In fact, as the owner of an SME, decisions you make not only
affect your business life but will also have implications on your personal and
family life.
This multipart series will take you through
the sale process from start to finish.
Part One - Is It
Time? See the Jul01 Issue
of Leveraged Capital.
Pre-sale considerations to selling your company.
Part Two - The Steak And The Sizzle. See
the Aug01 Issue of Leveraged Capital.
Packaging and marketing your company for sale.
Part Three – What’s It Worth? See the Sep01
Issue of Leveraged Capital.
A detail of valuation methods and pricing considerations.
Part Four – The Art Of The Deal.
A discussion of negotiation, documentation, and closing issues.
SELLING YOUR
BUSINESS – PART FOUR: The
Art Of The Deal.
In Part One of our series we explored pre-sale considerations to selling your
company. Part Two discussed the effective
packaging and marketing your company for sale. In Part Three, our Director of Client Strategies, Dan Gregory,
discussed
valuation methods and pricing considerations. Part Four of this four part
series will discuss negotiations, documentation and closing issues of relevance
to your deal.
You have made your decision to sell your company, your
advisory team is in place, you have prepared a comprehensive sale information
package, you know the price range you would like to sell your business, your
intermediary has conducted an efficient marketing process and now you have an
interested party who wants to buy your business.
Before we go into the specifics of documentation, an
overview of negations is important. If
negotiations are not handled well from the initial meeting with a potential
buyer, your likelihood of a successful closing drops exponentially.
That is not to say that tough negotiations limit your ability to sell –
rather the process and the spirit of negotiation is important to the success
sale of your company. As an aside, two excellent books for further reading about
negotiations are “Getting to Yes” by Fisher, Frye, and Patton of the Harvard
Negotiation Project and “How to Argue and Win Every Time ” lawyer by Gerry
Spence.
NEGOTIATIONS.
We have seen (and utilized) many styles of negotiations in different sale
and purchase situations over our years of M&A activity.
Despite personal differences in style and communication, certain common
threads exist in negotiations that have been successful, no matter how
complicated, stressful, or intense the negotiations may become.
Our experience has shown the most successful negotiations occur when a
technique called “principled negotiation” is adopted.
Principled negotiation does not involve taking extreme positions to
strategically move to a central position; rather,
both sides search for mutual gain and attempt to resolve disputes by objective
criteria such as audited financial statements, industry practices and
benchmarks, GAAP, or other types of verifiable data and information to name just
a few examples.
Key Negotiating
Principles To Consider When Selling Your Business.
Without these elements, chances are at some point in the negotiations to sell
your company, the negotiation process is likely to become frustrating for one or
both parties and the deal will likely fall apart.
- The
first (and what we consider top be the most paramount) principle needed
between negotiators is to above all, maintain honesty, integrity and good
faith at all times.
- Solve
easy items first and identify and isolate the tough issues.
This involves focusing on understanding the significant interests of
both parties, not positions, By identifying and prioritizing the tough
issues, it is easier to separate people from the problem, developing a good
working relationship and build trust between the parties.
- Keep
lines of communication open at all times. Negotiation is about communication.
By both parties moving forward from the simple to the complex issues,
an atmosphere of mutual respect is created. When one party ignores the other
or uses a tactic of “keeping them hanging for a while”, they do nothing
to build trust, credibility, or understanding in the process.
Calling off negotiations and walking away from the negotiation table
is a powerful tool and tactic and should only be used a last resort where
the other party is believed to be unreasonable.
- Be
flexible, creative and be prepared to compromise.
Listening and understanding the other party’s legitimate issues
and concerns and then creating an atmosphere of joint problem solving goes a
long way to reducing and eliminating perceptions and misperceptions adverse
to selling your company.
- Maintain
momentum. If you are
serious, your ultimate goal is to sell your company for what you consider to
be fair value. If the buyer is
serious, he or she wants to pay a fair price for your business.
If the negotiation process is perceived by both parties to be moving
forward, address and solving issues from easy to the more difficult, mutual
trust and respect will be built. If
the process inexplicable slow down, and momentum is lost, likely the deal
will not close. An appropriate
sense of seriousness and urgency is necessary for both to parties achieve
the end result. No one has time
to waste – you still need to operate your company through this process and
the buyer either wants to close the deal or move on to another opportunity.
- Be
prepared – do your homework.
Anticipate concerns and issues that the buyer may have about your
company. Prior to entering into
negotiations, your intermediary and your team should have a good
understanding of the buyer’s background, goals and priorities.
A simple point – yet it is surprising the number of negotiations
that we have entered where the other party is simply unprepared.
The better prepared you are, the more effective your negotiating
positions will be.
Negotiation Tactics
To Sell Your Business.
Some people may consider the word “tactics” in a negative sense.
If negotiations are handled in a manipulative manner where only one party
attempts to win, the process will likely fail.
Principled negotiations still allow for tactics to be used positively to
understand the other party and to resolve tough issues and remove roadblocks to
your advantage during the negotiating process.
Some of the tactics are outlined here:
- Good
Cop – Bad Cop. Perhaps
one of the most known negotiation tactics.
It is to your advantage to allow your intermediary or other advisor
to be the “bad cop” to handle sensitive and terse demands and issues. Rarely
will you have no exposure or relationship with the buyer after closing. By using your advisors for the tough role, you are more
likely to remain in a positive light with the buyer after the fact.
- Documentation
Drafting Control. An
advantage is held by the party that takes responsibility for the drafting of
documents because of control,
familiarity and initial understanding of the document.
- Reference
to Letter of Intent. Usually,
letters of intent (LOI) are drafted to be legally non-binding to either
party. But, the LOI creates a significant negotiation foundation because
recanting on the basic LOI terms without clear reason is considered to be a
sign of bad faith.
- Traders.
Understanding your key priorities will enable you to trade certain
concessions with the other party and to reach agreement for disputed items
of lesser importance to you.
- Limited
Authority. Limiting
authority can be an effective tool to allow time to avoid hasty or
uninformed decisions. Limited
authority can be granted to your advisors to limit the scope acceptance of
terms or concessions they are allowed to finalize.
In our deals involving multiple shareholders, we advise that at least
one shareholder not be involved in the negotiations so that you can talk to
your partner or board of directors as a means of reviewing and understanding
the buyers demands. This is a
very effective tool when faced with an aggressive negotiator using a tactic
of pushing for immediate decisions.
- Setting
Deadlines / Marathon Negotiations.
We believe that setting realistic deadlines keeps a sense of
momentum, control, and urgency to the negotiations.
Marathon negotiations, when combined with deadlines can be used to
settle outstanding issues between the parties.
- All
or Nothing and Terminating Discussions.
Both of these are tactics best used as a last resort.
With an “all or nothing” tactic in the case of a genuine impasse,
there could be advantage to making a “final offer”.
The risk being that the other party may not accept the final offer
and end negotiations. Terminating
negotiations, either permanently or temporarily, makes a powerful statement
but should be used as a last resort where the other party is clearly not
exhibiting good faith, ethics, or is making unreasonable and un-resolvable
demands.
Issues To Be
Negotiated When Selling Your Business.
Once you have established that you are prepared to negotiate with at
potential buyer, negotiations will be undertaken on an number of levels ranging
from Business, Legal,
Consideration, and Earn-out issue. We
have summarized some of theses issues that you will be faced with during the
negotiation process.
- Business
Issues:
- Price.
Unless the offer to purchase is all cash with no obligation for you
to provide additional representations and warranties, this is not as
simple as it may sound.
- What’s
being sold – assets or shares? Understand
from your tax advisors the implications to you and your estate post sale.
- Consideration.
How will the price be paid (see
point three below)?
- Timing.
When will the deal be closed and when will you be paid
in full?
- Legal
Issues:
- Representations
and Warrants. These typically
survive closing for a specified period of time and can become contentious
during negations. In basic
terms, reps and warrants are requested by the purchaser who is unprepared
to accept unknown risks about your business. This places an onus on you the seller for disclosure of
important issues surrounding the business.
- Indemnification.
Two primary reasons exist for indemnities i.)
remedies and enforcement as a result of any breach of contract and
ii.) allocating specific
risks about certain aspects that may not be covered in the reps and
warrants section.
- Management
Contracts. Will the purchaser
assume all of existing management contracts with your employees.
If you are providing management or consulting to the purchasers, it
is in your best interest to have a management contract that clearly
communicates what is expected of you with regard to time,
responsibilities, and compensation.
- Non-Compete.
Will you be prevented from competing in your industry for a period
of time? If so, does this
translate into a dollar value for you in the purchase price?
- Forms
Of Consideration. Although
summarized here, the following points have significant impact on the
ultimate price paid for your company. Consider
not only the financial but also the tax, legal, and practical implications
to the consideration and manner in which the purchase price is presented.
- Cash.
- Vendor
Take Back. (VTB) Usually
represents some form of interest after a period of time.
- Common
Stock and Options in acquiring or related company.
- Royalty
Payments.
- Earn-out
(see point 4 below).
- Lease
Amendments.
- Assumption
or forgiveness of indebtedness or guarantees by shareholders or the
corporation.
- Management
and Consulting Contracts.
- Earn-out
Considerations. Earn-outs
are used extensively in sales of small to medium sized companies.
There is no set template for earn-outs; the basis for an earn-out demands a high level of trust
and understanding (read documentation) between the parties
to ensure that the metrics and payments are fully understood.
- All
or Nothing; or a Graduated Payment. Will
the payment be made only if certain metrics are achieved or is the
payment over time based on a metric such as EBIT?
The key issue is how the metrics for payment will be established,
controlled, monitored and effected by the new owner.
- Can
synergies of the purchaser be isolated and accounted for?
To whose benefit do they accrue?
- How
are non-recurring items accounted for?
- Will
long-term objectives be compromised to satisfy the short-term issues?
- Default
mechanisms if earn-out is not paid. What
happens if the purchaser is unable to pay you even if certain metrics have
been met?
- Are
you able to trust the purchaser to continue to operate the company in a
manner that will make the metrics for earn-out payment a reality.
DOCUMENTATION
AND CLOSING ISSUES.
We will deal with the two of the most significant documents
that you will face when selling your company – the Letter of Intent and The
Purchase Agreement.
The Letter Of Intent.
The Letter of Intent (LOI) is sometimes referred to as “memorandum of
understanding”, “agreement in principle”, “letter of commitment”, or
“binder”. It is typically a
legally non-binding agreement where a seller and buyer have agreed to proceed
with a deal, but usually defines binding legal issues such a confidentiality,
exclusivity, and disclosure between the parties. The role of the LOI is to put in writing the basic and
material business issues that have been agreed to verbally between the parties.
It also serves to highlight high-level issues of agreement or previously
un-addressed issues. Some of these
major terms involve:
a.
Naming the parties involved;
b.
Share or asset sale;
c.
Price, payment terms, security offered for deferred payments;
d.
Ancillary agreements such as non-compete, consulting, and supply
agreements; and
e.
Other material business issues of relevance to the process, such as due
diligence period of time etc.
Although typically legally non-bind (and usually clearly
stated as such within the LOI) the LOI creates and understanding and a moral
obligation between the parties to move forward in good faith to consummate a
deal. It is difficult for either
party to materially change some of the larger issues detailed in the LOI without
sound reasoning during the future levels of negotiations without losing the
trust and faith of the other party.
The Purchase
Agreement.
Each transaction has its unique aspects to it that are reflected in the
sale/purchase agreement. The
following are some of the more common aspects of a Purchase agreement between
private companies that you should consider when selling your company, but in no
way is exhaustive. Consult with
your lawyer. Money spent with a
lawyer experienced in M&A will save you time, money, and problems down the
road.
- Identify
the parties involved in the transaction.
Obviously involves a purchaser and a seller but should also include
circumstances with regard to transferability of the agreement, and potential
guarantors.
- Structure.
Main terms and conditions of the agreement, attached schedules of
relevance, and exhibits of relevance to the deal.
- Timing
and Conditions. Agreements
typically provide for an interim period for certain conditions to be met
prior to the closing date. Examples
of these conditions may include obtaining all necessary consents and
approvals, execution of certain documentation and conveyances and perhaps
certain due diligence issues not necessarily covered off to that point in
time.
- Key
Dates To Consider.
- Balance
Sheet Date. This date is
usually reflected in reps and warrants to reflect no material changes in
financial condition, transactions, assets or liabilities of the company.
- Closing
Date. The date that the
purchaser assumes control of the company.
- Determination
Time. Used in cases where the
price is linked to the completion of an audit and will result in profits
or losses being to the account of the purchaser effective from this date.
- Effective
Date. Used in cases
where definitive financial statements are completed prior to closing and
avoids post-closing adjustment dates.
- Adjustment
Date. Sometimes referred to
as a settlement date that usually occurs after the closing date when the
final purchase price is determined usually based on definitive financial
statements.
- Consideration
Structure And Definitions. We
discussed earlier the various forms of consideration that may be defined
when realizing the purchase price of the deals. Detail and clarity are of paramount importance in
this section for both the buyer and seller.
- Post
Closing Issues. Issues such as
post-closing audits, accounting principles that will be applied, dispute
settlement mechanisms, earn-out formula and metrics should be clearly
defined here if applicable.
- Representations
and warranties. As we discussed
earlier these can be significant and contentious issues during the
negotiation process. Reps and
warrants are usually qualified according to materiality, prior knowledge of
the vendor, limits to dollar values of potential future claims, and term of
survival of reps and warrants.
- Covenants,
Conditions, Restrictive Covenants, And Indemnities.
Some general issues related to all transactions and some specific to
your deal. In essence these detail what you agree to do prior to
and after closing, conditions necessary for the deal to close,
what you agree not to do before or after the closing, allocating
risks in the form of indemnities between the parties and remedies for breach
of the these issues. Once
again, check with your lawyer to make sure you clearly understand each of
these issues.
- Closing
Issues. The agreement will
detail where the deal will be consummated, typically one of the lawyers
offices, how money will be transferred, and other issues that may be unique
to your deal.
The issue discussed in this section were intended to
be simplified and should not be used in lieu of independent legal advise that
you should seek out. If you are
similar to the profile of the majority of small to medium sized businesses, your
company represents the largest and most valuable asset that you own.
Selling your company may represent your single largest one time return on
your investment of money and time. To
maximize the value of your company and to generate the best return on your sale,
we advise our clients to seek out the best advisors possible, well before you
even consider placing your company for sale in the marketplace.
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EFFECTIVE COMMUNICATION.
TIPS TO PULLING OFF A SUCCESSFUL PRESENTATION.
Art Feierman, CEO Presenting
Solutions, San Clemente, California
Presenting Solutions
can provide you the equipment for great presentations. Other sources can provide
you the information for the presentation. Still others can write the
presentation for you (or you can do it yourself). It is up to YOU to turn all of
it into a great, effective presentation. Perhaps this section will help you make
that presentation a little better, or simplify your creating of the
presentation. Go for it!
What this section is all about!
There is no presumption here to teach you how to be a great presenter. Many of
you visiting this section have been communicating effectively for years. Please
consider this a refresher. We have tried to assemble many tips on presentations,
in the hopes that some will trigger old knowledge, others may be new to you.
When you leave here, we like to think that your next presentation will go
perhaps a little smoother or a bit better, by virtue of our reminding you about
some things that you already probably already know. We are pretty confident that
that next presentation won't go any worse.
We plagiarize only the very best.
I like to think that a few points made here represent "intuitive
leaps" in presentation theory, found only here. Fat chance!
I have just assembled in one place many "gems" accumulated over the
years. In particular, some of the regular sources I have found strong in this
type of information include: Sales and Marketing Strategies, Presentations
Magazine, Tom Hopkins; The Art of Selling, and others. Of course the wisdom from
these sources originated in many other places.
On
Preparing for a Presentation.
The
Structure of a Presentation.
The Rule of Tell'em.
Tell'em what you are going to tell'em, Tell it to them, and then Tell'em what
you told them. The translation: Start with an introduction; including an
"agenda" or set of goals for the presentation, provide the content;
information and summarize the presentation.
Last is First -- The
Summary/Conclusion Slide.
One researched "fact" of presenting that has been around for a while
is that most people attending a presentation will "remember" no more
than five key points. What has not been confirmed is what are the key points?
Ideally, the presenter should have a list of the five most important
points/concepts/facts that should be remembered. The attendees should
list the five they remember.
Now, what is the correlation?
Is your message getting across? Or are they remembering minor points and missing
your key ideas? It's bad enough that they will only remember 5 points, my own
theory say's you and they will not consider the same things important -- what
if they remember only one point that you think important.
How to get your audience to remember what you want them to? If we take this as a
truth, what impact should it have on creating an effective presentation.
Start
with the Last Slide!
That's
right, when you are ready to create your presentation, forget the details for
a minute, forget the presentation's organization, instead:
Write out your conclusion or summary slide first!
It should emphasize the
most important points you plan to make. Once you have visualized those points,
it's relatively easy build your presentation around them.
Curious, it comes back to the Rule of Tell'em. Even the brilliant people
in your audience may need your help in deciding what you believe most important.
Help them out!
The
Basic Rules of Good Presentations.
KISS - Keep It Simple Stupid.
There are numerous ways to apply this
ancient adage. The bottom line is that the more complicated you let things get,
the more trouble you can expect:
New technology is wonderful, but don't break in new equipment 15 minutes before
the presentation starts.
Keep your presentation focused on the message, don't get carried away with
special effects and razzle-dazzle.
Whatever you do, don't have rented equipment scheduled to arrive 10 minutes
before you speak.
Check out everything in advance. Then check it again.
Rehearsing the Presentation.
There's something to be said for winging
it: " Forget It!"
To present the most professional image, you need to know your presentation. It's
OK to occasionally leave the main "script" but, wandering
presentations that lack focus, or those too dependent on working from notes, or
long pauses to compose your thoughts are never acceptable.
Rehearsing the presentation includes more than just going over what you will be
saying. Rehearsing includes the entire presentation. Use the same tools too. If
you are using slides, or a projector, and have access to the room you will be
presenting in, rehearse there. Using a remote mouse and laser pointer for the
presentation, a microphone? Rehearse the presentation with these devices.
Don't memorize.
Rehearsing is one thing, committing the
presentation to memory and performing it by heart, is not the way to go. You
need to present, not to recite.
But use your notes very sparingly.
Too much time spent reading notes may
convince your audience that you are unprepared.
Dress for success.
Some say you can never overdress for a
presentation. Others will disagree. Our own belief is that other factors come in
to play, particularly how you handle yourself in the situation. Humor and how
formal your presentation is will impact whether you are "over"
presented.
But everyone agrees you should never underdress. How to determine what is
appropriate? Worst case: Ask people. It's all part of doing it right.
Pace yourself - don't go too fast,
or too slow.
A general rule, every "slide"
deserves at least 10 seconds, and none rate more than 100. If you find yourself
spending several minutes on one slide, consider breaking it up! (We're not
suggesting this as a firm rule, but a good guideline. Obviously, some charts or
graphics may take several minutes to properly present.) Then again, perhaps they
could be better as multiple "slides."
If you are done with a "slide" - lose it. Don't leave an image up for
your audience once you move on to other points.
The Presentation Tools.
Slides, LCD and DLP Projectors, Laptops,
LCD panels, Video, Multimedia, Sound. Laser Pointers, Lapel Microphones,
Overheads, Photo-quality printers, Posterprinters... There are a great many
presentation tools available to you as a presenter. Determine your communication
needs, the presentation environment, and select the right group of tools to get
your message across.
Creating
Support Materials. Great,
you have put together the killer presentation of all time. You looked good, your
audience reacted positively. It couldn't have gone better, so what's wrong?
Several attendees return to their organizations. They go to brief their
superior, after two questions, it becomes apparent that they have the concept.
Unfortunately, it also becomes apparent that they don't have any specifics.
Why?
No or poor documentation/handouts. When all the other pieces of the puzzle are
in place, don't limit the staying power of your message, by providing it without
the right support materials.
It
is Time to Speak Out -- Giving an Effective Presentation.
On Fear and
Death.
The Naked Audience.
It's been said that most people, including a great many executives, fear
presenting to large groups even more than they fear death.
If you are that nervous going into a presentation, one old technique we've heard
before: Get out there, look around, close your eyes for a moment, and picture
the people in the front row, either naked or in their underwear (depending on
your moral fibre). Either way, it is said to have a relaxing, almost humorous
effect.
The person who said "there
is nothing to fear, but fear itself" has never had his computer crash in
mid presentation, his overheads all fall on the floor, her slide tray still be
in the overhead compartment....
Pick one (or two) people easily visible to you, and "speak" to them.
Oh, be sure to also observe others, but concentrate on just a few. This may or
may not solve your "audiencophobia" but it will keep you in touch with
your audience, and provide you with some feedback.
Your
place as a Presenter.
Controlling your Audience, not
your computer.
Deferring questions, following up.
Depending on the nature of the meeting
you are presenting at, it may be appropriate to field questions during the
presentation. In some cases it will be proper to answer the question on the
spot, in other cases, you may be addressing that point later, or want to cover
it later on or after the meeting. You are the best judge of how to handle it.
Retain control of the flow of the presentation. Where appropriate defer
questions to later in the presentation or afterwards. It is perfectly acceptable
to reply with:
"I would like to address your question later on when I cover..." or
"You and I can discuss that after the conclusion of the
presentation..." or
"Regretfully, I do not have that information readily available. Please meet
me after the meeting, I will get your name... and get back to you next
week."
If you do defer any questions:
Follow through as promised. Nothing will damage your credibility in the long
run, more than not keeping your word.
Measuring your audience.
Hint: Snoring is a really
bad sign!
We have suggested you focus on only a few people in your audience. Are they
attentive? What about body language -- are they fidgeting or checking their
watches? Taking notes? Taking naps?
Seriously, it is for you to take note as to which parts of your presentation are
having an impact, and which are lost on your listeners.
Technology soothes the beast.
It's 2001 - do you have a laptop and projector? In the last couple of
years presentation products have made tremendous strides. For example, today's
projectors have evolved at least as much in the past two years, as computers
have done in the last five. With the big improvements in capabilities, everyone
expects more of you and your presentation.
As we have said elsewhere, the changes are rapid, so Lead, Follow, or Get
out of the Game.
"They thought my slides were
great last time (1988)"
Presentations:
The State of Confusion or "the presentation isn't till tomorrow"
"I have trouble sleeping
on the plane, with a PC on my lap."
Simply put: DON'T WAIT TILL THE
VERY LAST MINUTE TO WORK ON YOUR PRESENTATION.
We all know that few presentations are really finished and "in the
can" even a couple of days before the presentation must go on. That's even
with best intentions.
Get an early start on your presentation. You will still be changing it at the
last minute regardless.
It's the knowledge stupid, not the
graphics.
his is probably a corollary of KISS: The purpose of your presentation is to
communicate ideas and information, not to dazzle people with fancy graphics.
When the session is over, you want your audience marching out discussing the
ideas you set forth, not talking about the neat graphics, the special effects,
etc.
Your
Presentation Achieves Consciousness: or How to Make an Impression.
Alternative:
Your audience achieves unconsciousness.
If you had to do it again, and
again. You
have the content worked out, you followed all the rules, everything you must
have in the presentation -- direction, focus, information, reinforcement is
there.
Now what will make it even
better?:
Enthusiasm --
Absolutely nothing will help your presentation more than communicating your
passion and confidence. It doesn't have to be an evangelical "Do you
BELIEVE -- I BELIEVE," but the audience will recognize your belief, and
confidence, and it will add credibility to your message.
The Power of Language.
The words you select will dramatically
impact your audiences reaction -- to both your ideas and your effectiveness as a
presenter.
Your word processor has a thesaurus -- learn to use it -- effectively. Use
"power" and "command" words to get your audiences attention
and to give the impression of confidence and competence.
A few examples: Instead of "I think you will agree" try "I am
certain you will agree"
I hope you will consider vs. I recommend you to consider.
Address your audience in second person. "You" is a very powerful word,
generally audiences react much better to being addressed as "you" than
in the third person as they. "As a participant, you will benefit" vs.
Participants will benefit.
Not only should you put a thesaurus to work to find "better" words
with more impact, but also to prevent excessive use of the same word over and
over again. (Throughout this web site we have suffered from excessive use of the
words need, requirement, and solution, even with the thesaurus, we enjoyed
little relief, but still we probably reduced the use of "need" be 50%.
Other than that, "requirement" and "requisite" make a more
powerful impact.
Humor.
The right amount of humor - used judiciously, can go a long way to build rapport
with your audience, and keep your audience interested and attentive.
As a rule, don't tell jokes for their own sake, drop in your humor where it
fits, relating to a point, or a break between sections. Small amounts of humor
or a irreverent comment from time to time can go a long way to liven a
presentation. Remember, a sleeping audience remembers little.
Don't push your luck! Rehearsing your presentation in front of real people is a
great way to test the "acceptability" of your humor.
Quotations.
Appropriate quotations can make a noticeable impact on your audience. It's
not always possible to find quotes that are directly relevant to your
presentation, but it is often easy to find a series of quotes that complement or
promote concepts that are part of your presentation.
One presenter I know, in the Multi-level marketing business, likes to put a
series of quotes from computer "visionaries" including Thomas Watson
(IBM), Ken Olson (DEC), Bill Gates (Microsoft)...in his presentations.
These quotes go back many years:
With the less than stellar
credibility much of multi-level marketing is perceived to have, these quotes
which are all "way off the mark" provide a cautionary tale that tells
you that perceptions are not always right.
Better still, after the first couple of quotes, the audience is
"looking" for more -- they are having an impact on the audience.
Bottom line: Make your Quotations relevant -- and interesting!
What is the difference between
your audience and an elephant? The elephant never forgets -- the audience
occasionally remembers!
Art's
Rule of Five (Five presentation reminders in five categories).
Five things to do: Rehearse.
- When rehearsing
before a live being, eliminate your overview and summary slide. Find out
what they found interesting, memorable, confusing. Have them list what they
thought was most important! Did they get your message?
- Test all your
equipment in advance of the presentation.
- Rehearse using as
much or all of the tools you plan use during the real thing.
- Have a backup
plan: What if your projector dies, computer crashes, slide tray still on the
plane. What is plan B. (And did you practice it?)
- Introduction,
Objective, Overview, Presentation, Summary (Conclusion)
Five things for your audience to
do:
- Stay awake.
- Receive the
information they seek.
- Get your message.
- Take away
supporting materials that help them disseminate the information you
presented.
- Act on your
information.
Five things to do when you are
done:
- Thank them!
- Make materials
available
- Make yourself
available
- Provide them with
a method of reaching you
- Get feedback --
Find out what they thought of you, what they learned, what they were hoping
to learn but didn't, how you can improve your presentation, how to improve
your communication skills.
Five other things you could be
doing now instead of reading this (don't think you can get away this easily):
- Link to other
sites (with similar or related information). Also sites that are relevant to
your career.
- Start working on
your next presentation
- Review your last
presentation, analyze it based on what you have learned, and figure out how
it can be improved.
- Link to an on-line
bookstore and buy a book on better presentations.
- Log off, visit a
friend, a spouse, take a vacation, TAKE A BREAK!
Five items we appreciate you
doing!
- Bookmark our site!
- Purchase a
projector, film recorder or other presentation products from us!
- Tell or email
colleagues about our site, great products, great prices, etc. And don't
forget to give them our email and web address.
- Visit us again for
the latest news, trends and tips in the presentation world. Plus the latest
product introductions and Special Pricing and Programs.
- Accept our thanks
for visiting us, providing feedback, spreading the word, and giving us the
opportunity to provide you with your presentation equipment.
Art
Feierman is CEO of Presenting Solutions, a professional AV dealer, established
in 1994. What is quite astounding is that ninety percent of sales are
achieved from their web site. Presenting Solutions has created some unique
methods of selling multimedia projections on line via their "Virtual Demo
Room".
Check
them out at www.presentingsolutions.com
or call 1-800-701-9869
=========================================================
Calling on Canadian Suppliers to Meet the Needs of Federal Government
Procurement in the United States.
Halifax,
Nova Scotia Monday,
November 5
Toronto,
Ontario
Tuesday November 6
Montreal,
Quebec
Wednesday, November 7
Calgary,
Alberta
Thursday, November 8
The
Canadian Commercial Corporation (CCC), in partnership with federal and
provincial governments, agencies and export associations, are inviting you to
attend a one day seminar on United
States Government procurement.
Canadian
exporters will learn first hand from defense and U.S. civilian buying agencies
about real procurement requirements anticipated over the coming years and what Canadians
firms need to do, in order to be able to conduct business with the United States
Federal Government.
In
the wake of the tragic events of September 11, immediate and longer-term
requirements will be discussed by U.S. agencies and the Government of Canada.
The
U.S. Government is the largest buyer of goods and services in the world,
spending in excess of $100 billion annually. Defense and civilian agencies
purchase everything from services, technologies, consumer goods to aerospace, defense
and security systems.
This
seminar is an opportunity to learn about real procurement requirements being planned
and anticipated over the next several years in the United States and Canada.
Who's
going to be there?
http://www.nytimes.com