FranCnsult Business Management and Exit

Strategies Services

The integration of Business Management with Mergers & Acquisitions

FranCnsult Business Analysis & Value Assessment

• Increasing your PROFITS.

• Maximizing your NET WORTH.

• The integration of Business Management

with Exit Strategies & Traditional Business

Investment.

Welcome to our world.

A Business Owner’s Concerns About Business Management.

• Meeting Payroll

• Cash Flow

• Profitability

• Productivity

• Sales

• Product Pricing

• Staff Turnover

• Future Planning

A Business Owner’s Concerns About Succession.

• Increasing Value

• Family members

• Management structure

• Employees

• Deal Structure

• Confidentiality

Who can a Business Owner turn to?

• A CPA?

• An Insurance Broker?

• A Banker?

• An Attorney?

• A Friend?

And the results will be…

• A CPA will keep you compliant with the IRS

• An Insurance Broker will sell you the policies you need

• A Banker will want to loan you money

• An Attorney will only interpret law for you

• And a Friend will tell you what you want to hear

Every Business Owner Needs…

• Access to a proven team of Business

Management professionals with Strategic

Planning, Organizational Development, and

Profit and Expense Control capabilities.

• Access to a group of highly trained specialists

capable of analyzing and maximizing value.

PMC Management & Financial Solutions The Integration of Business Management with Net Worth Accumulation.

Business Management Goals:

• Provide a business analysis of your company

• Quantitative and Qualitative Cost/Benefit based Recommendations

• Increasing your Profits by maximizing your useable revenue and minimizing your expenses

• Coaching, Teaching, Training, & Mentoring Tomorrows Success Stories

Exit Strategy Goals:

• Provide a valuation of your company

• Increase your value by identifying unnecessary costs that are being incurred

• Establish Exit Strategy • Establish a Market and Pre-

qualify buyers • Monitor and Manage the

solicitation and acquisition process

• Invest in Passive/Active wealth preservation and growth assets

Management & Financial Solutions The integration of Business Management with Net Worth Accumulation.

• Franchising Evaluation and Development

• Operating nationally.

• Based in Lexington, Kentucky.

• Consultants: 25+ years of Business

Management and Exit Strategy Experience.

• Confidentiality and Demonstrated Track Record

of Success

OUR QUEST FranCnsult is your agent of change: •To expedite the decision process •To establish and encourage leadership. •To demand accountability •To expect results

Increasing Shareholder Value & Net Worth

WHO WE ARE • Business Savvy Transition Coaches • Family Business Oriented • 3 Divisions

• Franchise Development & Ownership • Business Consulting

– Analysis/Assessment – Project Implementation

• Mergers & Acquisitions

WHAT YOU GET

• S.W.O.T. (Strengths, Weaknesses,

Opportunities, Threats)

• Effect of Problems to the Client • Cost in Lost Profitability • Correction Required • Self fix and/or Outside Help • Investment to get Outside Help • Additional Bottom Line Profit Opportunity

BENEFITS OF OUR INVOLVEMENT

• Objective Assessment of your SITUATION

• Quantitative and Qualitative Review

• Impact on your Profitability is Measured

• A Pathway to Improved Performance

• Cost/Benefit based Recommendations

HOW WE WORK • Not Magicians: We work with your Actual

Facts

• Not off the Shelf: Our work’s Client Specific

• Bonded: $50,000 per employee

• Analysis Length: Usually 4 to 5 Days

WHAT WE DO

•Strategic Planning

•Organizational Development

•Profit and Expense Control

STRATEGIC PLANNING

• Where you are; Where you want to go; How you are going to get there!

• Establish Benchmarks and Timelines • Three Month Intervals for Eighteen Months

ORGANIZATIONAL DEVELOPMENT

• Executive Assessment & Coaching

• Developing Multiple Management Tiers

• Decision Making & Problem Resolution

• Maximizing Efficiency & Productivity – Delegation & Empowerment – Constructive Communication – Training, Motivation, Incentives

PROFIT & EXPENSE CONTROLS

• Cash Flow Management & Forecasting

• Budgeting and Job Costing

• Systems and Procedures Analysis

• Breakeven & Margin Analysis

• Inventory and Cost Controls

• Profit Planning

S.C.O.P.E.

Each project undertaken by our Consulting Division involves evaluation, modification, and generation of systems, controls, organizational structure, and procedures to provide information and results for evaluation by management. Systems FranCnsult custom designs operating systems to maximize profit and efficiency. Controls

FranCnsult implements proven controls to monitor and evaluate performance and force profit.

Organization

FranCnsult streamlines the client's organization to best affect cost-effective delivery of the product or service while managing internal information systems.

Procedures

FranCnsult will develop custom procedures and policies to insure smooth applications of systems necessary to effect results.

Evaluation

These systems, controls, organizational structures, procedures and policies will provide management the necessary information to manage profitability. Quality management, not quantity. Finger tip reporting and informed decision making.

OUR CLIENT MAKE-UP BY # OF EMPLOYEES

6

3438

14

5 2

1-10 11-20 21-50 51-100 101-150 151+

Full-Time Employees

OUR TARGET MARKET

SALES REVENUE

7

26 2824

12

3

05

1015

202530

$0-$3 $3-$5 $5-$10 $10-$25 $25-$50 $50-$100+

In Millions of dollars

% o

f fi

rms

OUR TARGET MARKET

OUR TARGET MARKET

Primary Business

0 5 10 15 20 25

Other Services

Agriculture & Forestry

Transportation & Warehousing

Construction & Trades

Manufacturing

Wholesale Distribution

Health Care

Mining & Oil & Gas Extraction

% of Firms

EXISTENCE OF WRITTEN BUSINESS AND STRATEGIC PLANS

40

22

0 10 20 30 40 50

Current WrittenBusiness Plan

WrittenStrategic Plan

% of Firms

PROSPECT PROFILE

HOW DEPENDENT IS THE BUSINESS ON THE OWNER?

15

19

31

44

05

101520253035404550

1 (not at all) 2 3 4 5 (very)

% o

f Firm

s

PROSPECT PROFILE

HOW MANY GENERATIONS OWN A FAMILY BUSINESS

66

26

6 20

10203040506070

one two three four or more

# of generations

# of

Firm

s

PROSPECT PROFILE

Mergers & Acquisitions Exit Strategies

ESTIMATED VALUE OF THE BUSINESS

12

21

44

116 4 2

05

101520253035404550

<$.5 $.5-$.9 $1-$4.9 $5-$9.9 $10-$19.9

$20+ don'tknow

In millions of dollars

% o

f Firm

s

HOW MUCH ARE THEY WORTH?

Consulting Engagement Fee Schedule

M & A Transactions

FranCnsult is retained, in essence, as a consultant firm working for an assessment and market development retainer fee of eighty-five hundred dollars, ($8,500.00) which is to be credited against a success fee; plus expenses.

The Client will pay all expenses at cost, travel expenses are to be pre-authorized in writing by the client. When, and if, the transaction is closed, the Client agrees to pay to FranCnsult a success fee or commission equal to:

6% of the first million dollars of the gross amount of the transaction. 5% of the second million dollars of the gross amount of the transaction. 4% of the third million dollars of the gross amount of the transaction. 3% of the fourth million dollars of the gross amount of the transaction. 2% of all amounts thereafter. Such fee shall be due and payable, in cash, at closing. For the purposes hereof,

"closing" is defined to mean the date on which stock or assets of the company are sold or otherwise conveyed or transferred.

Consulting Engagement Fee Schedule

Valuations

The objective of the program is to provide shareholders and management with an independent professional review of those assets and other elements that effect the company's value. The company is given a present market place value and guidelines to increase that value.

The program cost is dependant upon the time and consultant skill set requirements. This is determined by client size, business type, multiple locations, diversification of profit centers, and availability and accuracy of historical information. The fee starts at $12,500.00, plus expenses, requires a minimum of 4 days on-site and takes a minimum of 10 subsequent off site business days to complete the company

Consulting Engagement Fee Schedule

Senior Consultant $180.00 per hour Specialist $225.00 per hour Partner/Principal $300.00 per hour

Expenses & Invoicing

The invoices (at least one per week) will cover all fees as follows: (1) hourly consulting fees ($180.00-$300.00) per man hour worked by each consultant assigned to the project and/or the M&A/Valuation flat rate, (2) reasonable airfare, ground transportation and lodging expenses incurred by the on-site consultants (substantiated by receipts) and, (3) thirty dollars per diem per consultant when traveling.

FranCnsult Management & Financial Solutions

The integration of Business Management . . . with Wealth Accumulation .

This is what we can do for your company.

One Question Remains:

Are you ready to maximize profits, to receive maximum value, to create wealth?