new alliance10

The Alliance:“ We Connect People, Information, and Money

with the Best ways to Maximize Business Value”

ROBERTSON& FOLEY

INVESTMENT BANKERS2

Serving the Middle Market

Sales(U.S. $ millions)

5 150 500 1,000

Small Lower Middle Upper Large

Businesses M I d d l e M a r k e t Companies

2-3x 4-6x 7-8x 8-10x >10x

3

Private Capital Markets

PrivateCapitalMarkets

Valuation

TransferCapitalization-

Growth

4

The Alliance

MaximumValue

Process(MVP)

Information-Education-Valuation

(MidMarket Place.com)

Transfer

(AM&AA)

Growth

(MidMarket Alliance)

Member Benefits“Based on over 25 years of transaction

experience, with thousands of client companies, unfortunately…

For 90% of all companies, the “value gap” is just too big for any sale today!”

6

What is the “Value Gap” today?

Personal Needs Business Value

Measure and Create Solutions to Bridge the “Value Gap”

7

Bridging the “Value Gap”Owner

Expectations/

Requirements

$__________

Business

Transfer Value

$_________

Increase Company Value

How?

8

3 Key Questions :

What do you really want most?….

How much will it all cost?….

What is the best way to get from what you have to what you want?

The Marketplace tells us:

‘Before Value can be sold or distributed….

Value must be Created!’

10

Future global “weather forecast”…

• Rate of change will accelerate - life will be more complex, busier . . .

• Adaptability, agility & momentum will be the key to success!

• Innovation, opportunities & entrepreneurship will thrive

• Disruption will be the order of the day

• Fun, fortunes & failure will be in abundance

http://www.kpcb.com/

Time Span based on Market Conditions

Per

form

ance

OriginalVision

Renaissance

Demise

Growth & Maturity Instability New Vision

Where is your business now ?

Business Changes

12

Changing “Owner-Manager” Risk Profile over the Business Lifecycle

Expansion InstabilityCheck Out

CEO

Shareholder

Risk

Entrepreneur

14

1. Increasing profitability of business 89%

2. Increasing value of business 76%

3. Providing access to capital forthe business 64%

4. Reducing debt level of business 63%

5. Expanding size of business 51%

Family Business, Research Findings, Mass Mutual

What are the Big Motives of Business Owners ?

The Current Environment

A Fragmented Marketplace

WealthSuccession

Buy SellESOP’sIPO’s

Mergers&

Acquisitions

• CPA’s• Attorneys• Insurance and

Investment

Advisors

WealthPreservation

Estate PlanningWills & Trusts

Charitable PlanningFoundations

• Attorneys / CPA’s• Trust / Charitable Officers• Insurance / Investment

Advisors

• Brokerages• Banks• Insurance and

Investment

Advisors401kIRA

Life InsuranceAnnuities

Mutual Funds

WealthAccumulation

Fragmented Industry

A Fragmented Approach is Ineffective

Today most financial professionals focus almost exclusively on just 1 or 2 of the pieces,

valuation, legal, accounting, tax, M&A, etc. -- they fail to completely understand the owner’s fundamental personal needs and comprehensively evaluate the company’s

overall business performance and potential

The Importance of a “BIG Picture” View

• Because the needs of the private Business Owner and the Company are so inextricably

interlined the best Financial Advisors focus on the whole and not just individual parts.

18

Who Best Manages the Team?

TeamManager

__________

CPA

Attorney

RiskManagement Professional

MoneyManager

PrivateInvestment

Banker

PersonalFinancial Advisor

Estate Planner

BusinessGrowth

Consultant

It all begins with awareness, information, and education…a whole new perspective on

the BIG picture

Reductionism HolismParts WholeStructured CreativeRational IntuitiveProve it! Open mindHierarchy SynergyCategories IndividualsSeperate ConnectedFuture/past NowPrecise ChaoticStatic DynamicMale FemaleNosy SelfcorrectingSeperate notes HarmonyMechanic Organic

Paul Wilson

Left

brain

Right

brain

LogicalSequential

RationalAnalyticalObjective

Looks at parts

IntuitiveImaginationEmotionalSynthesizingSubjectiveHolistic

“The New Corporate Skillset!”

21

“None of us is as smart as all of us.” Warren Bennis

October 31, 200623

Traditional Institutional Model Superseded

Many: OneAffinity Investing

Affinity Philanthropy

Old Model: Financial Institutions serving many individuals

Financial Institution

New Model: P2P Many: One, One: Many, Many: Many, One: One

One: ManyAffinity Purchasing

Few: Few Long Tail

Many: ManyPrediction Markets, Synthetic Economies

25

The MidMarket Alliance maximizes Value with a world-class professional community of

independent experts sharing ideas, resources, and proven best practices: The MVP system

27

MidMarket Alliance Connects

Web BasedInformation

Lawyers

Clients CPAs

Buyers

and Lenders

M&A Advisors

Business Value Growth Advisors

• Organize

• Compress time frames

• Improve Accuracy

• Reduce Risk

Maximum Value Process (MVP)

“If you can’t measure it you can’t manage it

and…If you can’t manage it you

can’t maximize it!

Process - View

Drives

31

We Know the Maximum Value Process (MVP)

Project Coordination

MVP

Maximizing Value Process

Awareness &Education

Personal Needs Analysis

“Value GAP”Analysis

BusinessEvaluation

Management Action Plan

(MAP)

Transaction Advisory

Personal & Estate Planning

Value-Growth

What was the main reason you went into business for yourself?

The planning process must be driven by the total personal needs of the business owner

What sort of relationship do you want to have with the business

going forward?

For how much longer do youwant to

remain involved with the business?

Where are you at now considering the lifecycle for your Business?

© COPYRIGHT FINANCEWARE, INC 2005 ALL RIGHTS RESERVED

Delivering W E A L T H C A R E

Sample:Aspirations (Ideal) and Traditional Goals (Acceptable)

Traditional advisory services focus on maximizing the size of your investment portfolio by minimizing your spending, maximizing your savings and positioning you in a portfolio with the highest risk you can tolerate. Achieving goals otherwise ignored and minimizing investment risk is what the Wealthcare process is all about. For most people, some goals are more important than others.

Your primary financial goals as determined in our goal assessment are outlined above.

Knowing the $ Value Gapyou can Model Alternatives

What are all the possible ways to

get from where you are to where you want to be?

37

“Choose the right transaction at the right time”

Design and Structure

“The Right Deal”

Close the Transaction

with Optimum Results

Manage the many Business andPersonal Transition Issues

Next Step: Personal Wealth Management

Manage Transaction Process

Value Maximization

ShareholderValue

ShareholderValue

Integrated Performance Management:

Why a Unified Approach Drives Greater Value

Copyright © 2005 Deloitte Development LLC. All rights reserved.

ShareholderValue

ShareholderValue

Introduction

• Processes used to manage performance– Budgeting and forecasting

– Financial close and consolidation

– Financial reporting

– Management and operational reporting

• Methodologies– Executive level scorecarding

– Profitability and cost management

– Other approaches to tracking and improving business performance

• Metrics to monitor and analyze performance against goals

• Tools to capture and sustain performance

Integrated Performance Management is a leading approach to helping companies develop a coherent, integrated approach to financial analytics to drive shareholder value. The framework consists of the following elements:

Reward Results

Monitor Individual Results

Reporting(Financial & Operational)

Forecasting

Budgeting

Business Planning

Strategic Planning

Analysis

Performance Measurement

ShareholderValue


ShareholderValue

ShareholderValue

IPM Capability Maturity Model

1 Processes

Cascading scorecards at all management levels Measures are normal result of business activity Performance Measure change with strategy Cycle time short, data available within days Variance to planned results can be translated into specific

business events

2Performance Measures/Data

Clearly articulated and communicated strategic objectives, policies, roles and expectations

Process and technology to monitor against objectives ingrained into management reporting and into culture

Clear linkage between measure and organizational success, (i.e. operating measures support financial results)

3Organization Alignment

Organizational ownership of measures is clearly understood. Driver based forecasting Compensation & culture promote behavior consistent with

corporate strategy and accuracy in budgeting, forecasting and planning

4Technologies and Tools

One planning system that is integrated to other systems and data

Trend-based modeling. Trend-based modeling draws on historical measures of the organization's headcount growth, which are projected into the future.

Capability Description

Leading Deloitte Client’s Representative Maturity Level

Non-existent1

Developing2

Defined3

Advanced4

Leading5

1

Financial Measures

Operating

Measures

Developing

Non Standard

The Integrated Performance Management Capability Maturity Model is a key tool used to assess a company’s current state processes, measures, organization, roles and tools

Integrated Performance Management Maturity Model

2

Based on initial feedback suggested first areas of focus


ShareholderValue

ShareholderValue

IPM With Enterprise Value Map (EVM)EVM links shareholder value with key operating drivers:

– Identifies value drivers and improvement levers

– Focuses on quantitative impact of strategies/initiatives that relate to business value

– Links value drivers with product, customer, operational and initiative portfolios

Shareholder Value

Marketing &Sales

AccountManagement

Cross-Sell /Up-Sell

Retention

Demand &Supply

Management

PriceOptimization

Marketing &Advertising

Sales

CustomerService &Support

OrderFulfillment &

Billing

IT, Telecom &Networking

Real Estate

HumanResources

Procurement(Excluding Production

Materials &Merchandise)

BusinessManagement

FinancialManagement

Materials

Production

Merchandising

Logistics &Distribution

ProductDevelopment

Real Estate &Infrastructure

Equipment &Systems

Finished Goods

Work inProcess &

Raw Materials

Accounts, Notes& InterestReceivable

Accounts, Notes& InterestPayable

BusinessPlanning

ProgramDelivery

BusinessPerformanceManagement

OperationalExcellence

Partnership &Collaboration

RelationshipStrength

Agility &Flexibility

Product &Service

Innovation

ServiceDelivery

Cash / AssetManagement

ImproveExecution

Capabilities

ImproveManagerial &GovernanceEffectiveness

ImproveReceivables &

PayablesEfficiency

ImproveInventoryEfficiency

ImprovePP&E

Efficiency

ImproveLogistics &

Service ProvisionEfficiency

ImproveDevelopment &

ProductionEfficiency

ImproveCorporate/

Shared ServiceEfficiency

ImproveCustomerInteractionEfficiency

StrengthenPricing

LeverageIncome-

GeneratingAssets

Retain andGrow Current

CustomersAcquire New

Customers

Volume PriceRealization

Selling,General &

Administrative(SG&A)

Cost of GoodsSold

(COGS)

Property, Plant& Equipment

(PP&E)Inventory Receivables

& PayablesCompanyStrengths

ExternalFactors

Revenue Growth Operating Margin(after taxes)

Asset Efficiency Expectations

Product &Service

Innovation

© 2004 All rights reserved. Confidential. 0104

D e l o i t t e E n t e r p r i s e V a l u e M a p TM

C o n d e n s e d V e r s i o n

Income Taxes

ImproveIncome Tax

Efficiency

Income TaxManagement Governance


ShareholderValue

ShareholderValue

IPM With Enterprise Value Map (EVM)

Key to an effective IPM framework is managing Financial & Operational Information across the Value Map

Volume Price Realization

Operating Margin

Shareholder Value

Revenue Growth Asset Efficiency Expectations

• Acquire new customers

• Retain and grow existing customers

• Leverage income generating assets

• Optimize Pricing Analytics

• Improve Demand/ Supply Mgmt

• Improve Product & Service Info

SG&A

• Improve Financial Information Delivery

• Streamline Infrastructure Processes

• Improve breadth, depth & quality of Financial Info

PP&E Efficiency

Working Capital

• Improve IT Mgmt

• Improve Enterprise Data Mgmt

• Improve Non-IT PP&E Tracking

• Improve Payables

• Decrease Receivables

• Optimize Inventory

Governance Effective-ness

• Ensure Regulatory Compliance

• Improve Internal Controls Mgmt

• Improve Managerial Effectiveness

External Factors /

Investor Trust

• Improve shareholder & analyst commun-ications

• Communicate company & mgmt. quality with timely financial information

COGS

• Rationalize product and service portfolios

• Improve demand forecasting process

• Improve capacity planning process

Mgmt. Effective-

ness

• Improve Measurement of Financial Performance

• Improve Analysis of Managerial Information

• Improve Performance Mgmt

• Planning/budgeting• Monitoring/analytics• Operational decision-

making• Standardization of data

•Customer information•Competitive information•Forward looking information•Standardization of data

• Standardize analytic tools and applications

• Consolidate data and financial information

• Standardization of data

• Decrease liability exposure for CXOs• Controls over quality of data• Monitoring and analytics• Communication between board,

management, shareholders and public• Internal controls and compliance

Shareholder Value

Marketing &Sales

AccountManagement

Cross-Sell /Up-Sell

Retention

Demand &Supply

Management

PriceOptimization

Marketing &Advertising

Sales

CustomerService &Support

OrderFulfillment &

Billing

IT, Telecom &Networking

Real Estate

HumanResources

Procurement(Excluding Production

Materials &Merchandise)

BusinessManagement

FinancialManagement

Materials

Production

Merchandising

Logistics &Distribution

ProductDevelopment

Real Estate &Infrastructure

Equipment &Systems

Finished Goods

Work inProcess &

Raw Materials

Accounts, Notes& InterestReceivable

Accounts, Notes& InterestPayable

BusinessPlanning

ProgramDelivery

BusinessPerformanceManagement

OperationalExcellence

Partnership &Collaboration

RelationshipStrength

Agility &Flexibility

Product &Service

Innovation

ServiceDelivery

Cash / AssetManagement

ImproveExecution

Capabilities

ImproveManagerial &GovernanceEffectiveness

ImproveReceivables &

PayablesEfficiency

ImproveInventoryEfficiency

ImprovePP&E

Efficiency

ImproveLogistics &

Service ProvisionEfficiency

ImproveDevelopment &

ProductionEfficiency

ImproveCorporate/

Shared ServiceEfficiency

ImproveCustomerInteractionEfficiency

StrengthenPricing

LeverageIncome-

GeneratingAssets

Retain andGrow Current

CustomersAcquire New

Customers

Volume PriceRealization

Selling,General &

Administrative(SG&A)

Cost of GoodsSold

(COGS)

Property, Plant& Equipment

(PP&E)Inventory Receivables

& PayablesCompanyStrengths

ExternalFactors

Revenue Growth Operating Margin(after taxes)

Asset Efficiency Expectations

Product &Service

Innovation

© 2004 All rights reserved. Confidential. 0104

D e l o i t t e E n t e r p r i s e V a l u e M a p TM

C o n d e n s e d V e r s i o n

Income Taxes

ImproveIncome Tax

Efficiency

Income TaxManagement Governance

ShareholderValue

ShareholderValue


ShareholderValue

ShareholderValue

Benefits of IPMIPM creates value by combining the power of technology, information, people and

process through all stages of the management cycle, from planning and budgeting to measuring and evolving. Specific benefits include:– Analytics Alignment generally means consolidation and elimination of measure to be

tracked– Provide clear linkage to enterprise-wide strategy and helps define specific actions– Provide decision makers with links to timely financial and non-financial information

regarding business performance– Allow the organization to leverage performance information across divisions,

geographies, business units, etc.– Help organizations evaluate and monitor internal initiatives from a strategic and tactical

perspective– Embed early warning alerts into information systems to highlight potential exceptions

and/or business issues– Provide tools for both finance and operations to allow them to collaborate and improve

budgeting, forecasting and planning capabilities– Enhance control over information and improve information cycle times

Strategy Map

FinancialPerspective

CustomerPerspective

InternalPerspective

Learning andGrowth

Perspective

Productivity Strategy Growth StrategyLong-Term

Shareholder Value

Expand Revenue

Opportunities

Improve CostStructure

Increase AssetUtilization

EnhanceCustomer Value

Functionality PartnershipServiceSelectionAvailabilityQualityPrice Brand

Customer Value Proposition

Relationship ImageProduct / Service Attributes

Supply Production Distribution Risk Management

Selection Acquisition Retention Growth

Opportunity ID R&D Portfolio Design/Develop Launch

Environment Safety and Health Employment Community

Operations Management

Process

Customer ManagementProcess

Regulatory and SocialProcess

Innovation

Process

Human Capital

Information Capital

Organization Capital Cultur

eLeadershi

pAlignment Teamwork

48

Maximum Value Player (MVP) [pley-er] noun

1. a person or thing that plays.

2. one actively involved especially in a competitive field or

process.

2007 Patricia Seybold Group Page 49

What exactly are we Doing??

OrganizingRating

Creating Designing

Publishing

Subscribing

Finding

PromotingSharing

50

“Web 2.0 generally refers to a second generation of services available on the WWW that lets people collaborate and share information online.” - Wikipedia.com

Shared Pictures =

Shared Knowledge =

Shared Bookmarks =

Shared News =

Shared Videos =

51

Become the lead “MVP”:

Photo by Uma B. - Flickr


Web 2.0

Social Networking

Customer-Contributed Content

Executable Web

Syndication

Published APIs

Web Services

Really Simple Syndication (RSS) Feeds, Atom

MultimediaPhotos, Videos,

Animation, Audio, Text

Rich Internet Apps

XML

Blogs, WikisMash UpsPodcasts

Flash, Flex , Ajax

Ruby on Rails, Python

JavaScript

Amazon S3

Google Earth

icalendar

Gadgets, Widgets

Sharing

Meta Tags

TaggingLinking

eProject Roles Visualization

Dynamic ApplicationsVendors &

Partners

Document Management

Internal Teams

Project Managers

Executives

Communication Management

Portfolio

Management

ProjectManagement

Teams and Resources

MidMarket Alliance Solution Center

Customers andCustomer

Issues

ServiceAnd

Support

SolutionPartners

SolutionSales

SolutionMarketing

ResearchAnd

Development

SolutionDevelopment

MarketResearch

IntegrationPartners

MidMarket Place.com• Where owners and advisors of privately held businesses go for

valuable free information to learn about the marketplace and to configure the ideal mix of products and professional services they need to maximize business value. The “go-to” place for middle market owners and advisors.

• Where professional services providers collaborate to deliver a compelling value proposition to the middle market business owner.

• A 21st Century lead generation machine

MidMarket Place.com Branding Elements

• A Collaborative “Wiki”• Marketing Materials• Advertising• Public Relations• Direct Mail• Events and Seminars • Telemarketing• One-to-One Marketing• Conferences

• A Singular Focus on the Business Owner

• Vision and Creativity• A Sense of Urgency• Committed Professionals• Passion for Excellence• Fee Sharing Agreement • Dispute Resolution • One Goal: New Business!

What’s a Brand Community?

Brand Community – Also Called:- Customer Community- Brand Influencer Team

- Fan Club- Crowdsourced Network- Brand Wiki Members- Ambassador Program

- Stakeholder/Developer Forum- Advisory Panel

- Beta Testing Group

What It is Not – Social Network- A Platform (typically media-driven and online) that Brings People Together i.e. YouTube, Facebook, flickr, Wikipedia

Why It Doesn’t Qualify:- People-centricity without a brand orientation- A conduit, not usually the end brand game - A social and media platform, not a brand rallying point

Brand Communities - The End Game: Accelerated sales

More traffic Save costs

Drive marketing efficiencies Entrench brand loyalty Improve operations Support products Upsell services

Brand Communities Can Tap Four Valuable & Untapped Market Forces

Peer Content

Peer Engagement/

Fanship

PeerCollaboration

Peer Advocacy

Offline Outreach and Awareness

• Offline– Events– Business /Trade Shows– Brand Experience– PR /Buzz– Paid media/promotion– Other Asssociations– Referrals

The MidMarket Alliance

IP

Sta

nd

ard

s, To

ols

, Tem

pla

tes

ContentIntellectual

Property(IP)

CommunitiesPortals

SeminarsVirtual Classroom

National ConferencesTools and Applications

Content on DemandCDs

Courseware

Re-p

urp

ose

Identification Organization Education Implementation Assessment

The Alliance Operating System

SME’s,Content

Developers

Learning &Performance

Solutions

Benefits for:•Members•Partners•Clients•Employees

Metadata

Repositories

Performance Learning

Web-based Systems for Collaboration

Capital, Resources, and Tools

Expert Advisors

Education

Information

OwnersAwareness

MidMarket Place.com

The Alliance:“ We Connect People, Information, and Money

with the Best ways to Maximize Business Value”

new alliance10

Documents

value witha

family business

business changeswhere

private business owner

increasing value of

big motives of business

best financial advisors

best ways