New Alliance10

The Alliance:
“ We Connect People, Information, and Money with the Best ways to Maximize Business Value”

2
Serving the Middle Market
Sales
(U.S. $ millions)
5 150 500 1,000
SmallLowerMiddleUpper Large
Businesses M I d d l e M a r k e t Companies
2-3x 4-6x 7-8x8-10x >10x

3
Private Capital Markets
Capitalization-
Growth
Transfer
Private
Capital
Markets
Valuation

4
The Alliance
Growth
(MidMarket Alliance)
Transfer
(AM&AA)
Maximum
Value
Process
(MVP)
Information-Education-Valuation
(MidMarket Place.com)

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?
Business Value
Personal Needs
Measure and Create Solutions to Bridge the “Value Gap”

7
Bridging the “Value Gap”
Owner Expectations/
Requirements
$__________
Increase Company Value
Business
Transfer 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

Business Changes
Where is your business now ?
Instability
Growth & Maturity
New Vision
Renaissance
Performance
Demise
Original
Vision
Time Span based on Market Conditions

12
Changing “Owner-Manager” Risk Profile over the Business Lifecycle
Entrepreneur
Expansion
Instability
Check Out
Risk
CEO
Shareholder

14
What are the Big Motives of Business Owners ?
1.Increasing profitability of business89%
2.Increasing value of business76%
3.Providing access to capital for
the business64%
4.Reducing debtlevel of business63%
5.Expanding size of business51%
Family Business, Research Findings, Mass Mutual

CPA’s
Attorneys
Insurance and
Investment
Advisors
Brokerages
Banks
Insurance and
Investment
Advisors
Wealth
Accumulation
Wealth
Succession
Buy Sell
ESOP’s
IPO’s
Mergers
&
Acquisitions
401k
IRA
Life Insurance
Annuities
Mutual Funds
Industry
Fragmented
Attorneys / CPA’s
Trust / Charitable Officers
Insurance / Investment
Advisors
Wealth
Preservation
Estate Planning
Wills & Trusts
Charitable Planning
Foundations
The Current Environment
A Fragmented Marketplace

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?

It all begins with awareness, information, and education…a whole new perspective onthe BIG picture

“The New
Corporate
Skillset!”
ReductionismHolism
Parts Whole
Structured Creative
Rational Intuitive
Prove it! Open mind
Hierarchy Synergy
Categories Individuals
Seperate Connected
Future/past Now
Precise Chaotic
Static Dynamic
Male Female
Nosy Selfcorrecting
Seperate notes Harmony
Mechanic Organic
LogicalSequentialRationalAnalyticalObjectiveLooks at parts
IntuitiveImaginationEmotionalSynthesizingSubjectiveHolistic
Paul Wilson

21
“None of us is as smart as all of us.” Warren Bennis

October 31, 2006
23
Traditional Institutional Model Superseded
Financial Institution
Many: ManyPrediction Markets, Synthetic Economies
One: ManyAffinity Purchasing
Few: Few Long Tail
Old Model: Financial Institutions serving many individuals
New Model: P2P Many: One, One: Many, Many: Many, One: One
Many: OneAffinity InvestingAffinity Philanthropy

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
Buyers
and Lenders
M&A Advisors
CPAs
MidMarket Alliance Connects
Organize
Lawyers
Compress time frames
Web Based
Information
Business Value Growth Advisors
Improve Accuracy
Clients
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)
Awareness &
Education
Personal &
Estate Planning
Personal Needs
Analysis
Project Coordination
MVP
Maximizing Value Process
Transaction
Advisory
Business
Evaluation
Value-
Growth
“Value GAP”
Analysis
Management
Action Plan
(MAP)

The planning process must be driven by the
total personal needs of the business owner
What was the main reason you went into business for yourself?
What sort of relationship do you
want to have with the business
going forward?
For how much longer do you
want to
remain involved with the business?
Where are you at now considering the
lifecycle for your Business?

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 Gap
you 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”
Manage the many Business and
Personal Transition Issues
Manage Transaction
Process
Design and
Structure
“The Right Deal”
Close the
Transaction
with Optimum Results
Next Step: Personal Wealth Management

Value Maximization

Integrated Performance Management: Why a Unified Approach Drives Greater Value

Introduction
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:
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

IPM Capability Maturity Model
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
Leading
5
Non-existent
1
Developing
2
Defined
3
Advanced
4
Leading Deloitte Client’s Representative Maturity Level
Capability
Description
Financial Measures
1
Operating
Measures
Developing
2
Non Standard
Based on initial feedback suggested first areas of focus

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

IPM With Enterprise Value Map (EVM)
Key to an effective IPM framework is managing Financial & Operational Information across the Value Map
Shareholder Value
Operating Margin
Asset Efficiency
Revenue Growth
Expectations
Volume
Price Realization
SG&A
PP&E Efficiency
Working Capital
Governance Effective-ness
External Factors /
Investor Trust
COGS
Mgmt. Effective-ness
Acquire new customers
Retain and grow existing customers
Leverage income generating assets
Optimize Pricing Analytics
Improve Demand/ Supply Mgmt
Improve Product & Service Info
Ensure Regulatory Compliance
Improve Internal Controls Mgmt
Improve Managerial Effectiveness
Improve Financial Information Delivery
Streamline Infrastructure Processes
Improve breadth, depth & quality of Financial Info
Improve shareholder & analyst commun-ications
Communicate company & mgmt. quality with timely financial information
Improve IT Mgmt
Improve Enterprise Data Mgmt
Improve Non-IT PP&E Tracking
Improve Payables
Decrease Receivables
Optimize Inventory
Rationalize product and service portfolios
Improve demand forecasting process
Improve capacity planning process
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
Standardize analytic tools and applications
Consolidate data and financial information
Decrease liability exposure for CXOs
Controls over quality of data
Monitoring and analytics
Communication between board, management, shareholders and public
Internal controls and compliance

Benefits of IPM
IPM 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
Long-Term
Shareholder Value
Productivity Strategy
Growth Strategy
Expand Revenue
Opportunities
Improve Cost
Structure
Increase Asset
Utilization
Enhance
Customer Value
Financial
Perspective
Customer Value Proposition
Partnership
Service
Selection
Availability
Quality
Price
Functionality
Relationship Image
Product / Service Attributes
Customer
Perspective
Brand
Operations Management
Process
Customer Management
Process
Regulatory and Social
Process
Innovation
Process
Environment
Safety and Health
Employment
Community
Opportunity ID
R&D Portfolio
Design/Develop
Launch
Supply
Production
Distribution
Risk Management
Selection
Acquisition
Retention
Growth
Internal
Perspective
Human Capital
Learning and
Growth
Perspective
Information Capital
Organization Capital
Culture
Leadership
Alignment
Teamwork

Summary - Value Proposition
A repeatable process that uses tools, methods and people that help you understand and insure that your Organization, Processes and Technology are Aligned with your Business Strategy, by synchronizing the flow of products and information to the marketplace, resulting in a significant increase in shareholder value.

48
Maximum Value Player (MVP) [pley-er]noun
a person or thing that plays.
one actively involved especially in a competitive field or process.

What exactly are we Doing??
Subscribing
Rating
Organizing
Creating
Finding
Designing
Sharing
Promoting
Publishing

50
Shared Pictures =
Shared Knowledge =
“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 Videos =
Shared News =
Shared Bookmarks =

51
Become the lead “MVP”:
Photo by Uma B. - Flickr

Web 2.0
Executable Web
Customer-Contributed
Content
Rich Internet Apps
Sharing
Syndication
Multimedia
Photos, Videos,
Animation, Audio, Text
Flash, Flex , Ajax
Really Simple Syndication
(RSS) Feeds, Atom
Ruby on Rails,
Python
JavaScript
Podcasts
Blogs, Wikis
Mash Ups
Gadgets, Widgets
Linking
Tagging
Published APIs
XML
Social Networking
Meta Tags
icalendar
Google Earth
Web Services
Amazon S3

eProject Roles Visualization
Communication Management
Executives
Portfolio
Management
Project Managers
Project
Management
Internal Teams
Teams and
Resources
Dynamic Applications
Document Management
Vendors & Partners

MidMarket Alliance Solution Center
Market
Research
Research
And
Development
Solution
Development
Customers and
Customer
Issues
Solution
Sales
Solution
Marketing
Solution
Partners
Service
And
Support
Integration
Partners

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.comBranding 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 FourValuable & Untapped Market Forces
Peer Engagement/ Fanship
Peer
Content
Peer
Collaboration
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
Benefits for:
Communities
Portals
Members
Partners
Clients
Employees
SME’s,
Content
Developers
Learning &
Performance Solutions
Content
IntellectualProperty(IP)
Seminars
Virtual Classroom
Standards, Tools, Templates
Re-purpose
National Conferences
Tools and Applications
Content on Demand
CDs
Courseware
The Alliance Operating System
Identification
Organization
Education
Implementation
Assessment
Performance
Learning
Repositories
Metadata

MidMarket Place.com
Web-based Systems for Collaboration
Capital, Resources, and Tools
Expert Advisors
Education
Awareness
Information
Owners

The Alliance:
“ We Connect People, Information, and Money with the Best ways to Maximize Business Value”

New Alliance10

by MidMarket Alliance

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