AH Cunningham & Associates, LLC (CA) is a Lexington Kentucky firm dedicated to the owners of small and medium-sized businesses, franchise owners, and franchisors and eachs expectations for their business. It\’s just that simple. If the reality of where you are today in your business matches your expectation for the business, there is little CA can do to make it any better. On the other hand, if you are starting a new business, acquiring a franchise, or own a business that has concerns about lagging profits, being undercapitalized, sagging employee morale, accounts receivable collection, time to run the business properly, growth decisions (such as buying a another business or franchise and/or franchising your business), divesting, or a multitude of other business challenges, then consulting with CA can help you get off to a good start or get things back on track to compete effectively and more profitably.

1. FranCnsult
Business Management and Exit
Strategies Services
The integration of Business Management with Mergers & Acquisitions

2. 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.

3. A Business Owner’s Concerns About
Business Management.
• Meeting Payroll
• Cash Flow
• Profitability
• Productivity
• Sales
• Product Pricing
• Staff Turnover
• Future Planning

4. A Business Owner’s Concerns About
Succession.
• Increasing Value
• Family members
• Management structure
• Employees
• Deal Structure
• Confidentiality

5. Who can a Business Owner turn to?
• A CPA?
• An Insurance Broker?
• A Banker?
• An Attorney?
• A Friend?

6. 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

7. 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.

8. PMC Management & Financial Solutions
The Integration of Business Management with Net Worth Accumulation.
Business Management Goals: Exit Strategy Goals:
• Provide a business analysis • Provide a valuation of your
of your company company
• Quantitative and Qualitative • Increase your value by
identifying unnecessary
Cost/Benefit based
costs that are being incurred
Recommendations
• Establish Exit Strategy
• Increasing your Profits by • Establish a Market and Pre-
maximizing your useable qualify buyers
revenue and minimizing your • Monitor and Manage the
expenses solicitation and acquisition
• Coaching, Teaching, process
Training, & Mentoring • Invest in Passive/Active
wealth preservation and
Tomorrows Success Stories
growth assets

9. 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

10. 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

11. WHO WE ARE
• Business Savvy Transition Coaches
• Family Business Oriented
• 3 Divisions
• Franchise Development & Ownership
• Business Consulting
– Analysis/Assessment
– Project Implementation
• Mergers & Acquisitions

12. 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

13. 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

14. 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

15. WHAT WE DO
• Strategic Planning
• Organizational Development
• Profit and Expense Control

16. 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

17. ORGANIZATIONAL DEVELOPMENT
• Executive Assessment & Coaching
• Developing Multiple Management Tiers
• Decision Making & Problem Resolution
• Maximizing Efficiency & Productivity
– Delegation & Empowerment
– Constructive Communication
– Training, Motivation, Incentives

18. PROFIT & EXPENSE CONTROLS
• Cash Flow Management & Forecasting
• Budgeting and Job Costing
• Systems and Procedures Analysis
• Breakeven & Margin Analysis
• Inventory and Cost Controls
• Profit Planning

19. 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.

20. OUR TARGET MARKET
OUR CLIENT MAKE-UP BY # OF EMPLOYEES
38
34
14
6 5
2
1-10 11-20 21-50 51-100 101-150 151+
Full-Time Employees

21. OUR TARGET MARKET
SALES REVENUE
28
30 26
24
% of firms
25
20
15 12
10 7
3
5
0
$0-$3 $3-$5 $5-$10 $10-$25 $25-$50 $50-$100+
In Millions of dollars

22. OUR TARGET MARKET
Primary Business
Mining & Oil & Gas Extraction
Health Care
Wholesale Distribution
Manufacturing
Construction & Trades
Transportation & Warehousing
Agriculture & Forestry
Other Services
0 5 10 15 20 25
% of Firms

23. PROSPECT PROFILE
EXISTENCE OF WRITTEN BUSINESS AND
STRATEGIC PLANS
Written
22
Strategic Plan
Current Written
40
Business Plan
0 10 20 30 40 50
% of Firms

24. PROSPECT PROFILE
HOW DEPENDENT IS THE BUSINESS ON
THE OWNER?
50 44
45
40
35 31
% of Firms
30
25 19
20
15
10 5
5 1
0
1 (not at all) 2 3 4 5 (very)

25. PROSPECT PROFILE
HOW MANY GENERATIONS OWN A
FAMILY BUSINESS
70 66
60
50
# of Firms
40
30 26
20
10 6
2
0
one two three four or more
# of generations

26. Exit Strategies
Mergers & Acquisitions

27. HOW MUCH ARE THEY WORTH?
ESTIMATED VALUE OF THE BUSINESS
50 44
45
40
35
% of Firm s
30
25 21
20
15 12 11
10 6
4 2
5
0
<$.5 $.5-$.9 $1-$4.9 $5-$9.9 $10- $20+ don't
$19.9 know
In m illions of dollars

28. 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.

29. 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

30. 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.

31. FranCnsult
Management & Financial Solutions
The integration of Business Management . . .
with Wealth Accumulation .
This is what we can do for your company.

32. One Question Remains:
Are you ready to maximize profits, to receive
maximum value, to create wealth?